Islamic Finance Today
Does Islamic Banking Have a Social Purpose?
Is there a social purpose of Islamic banking and finance? Islamic bankers would tend to say NO, as they believe that Islamic banking should be driven by a legitimate corporate purpose only.
What is a social purpose? Social purpose concerns the contribution that a business makes to realise societal goals.
What are some common social goals? They could be: justice, equal access to opportunities and finance, poverty alleviation, gender diversity, and the list can in fact be very long. This is the reason that Islamic banks find it difficult to define a social purpose and adhere to it.
What is a social purpose? Social purpose concerns the contribution that a business makes to realise societal goals.
What are some common social goals? They could be: justice, equal access to opportunities and finance, poverty alleviation, gender diversity, and the list can in fact be very long. This is the reason that Islamic banks find it difficult to define a social purpose and adhere to it.
Published: September 21, 2026
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