Al-Hamadani, Khaled. "“The Banking System in the Islamic State: A Historical Study," ,” Year 6, Issue 23 (Winter 1421 AH/ 2000 ADCE), Pp. 15 - 41.

Abstract

Khaled al-Hamdani addresses the meaning in language and terminology of the term “banking” (al-ṣayrafah), the historical development of its types in the Islamic state, the tasks entrusted to bankers, the concern of officials of the Islamic state in banking, and its impact on the stability of economic activity and prosperity. Al-Hamdani’s study indicates that banking in the Islamic state is closely similar to modern banks, in which they exchanged currencies, cashed cheques and bills, evaluated currency, accepted deposits, and other transactions. There were official banks and private ones, yet the banking system then did not partake in usury (ribā), and there was strict administrative oversight to prevent violations of the Shariʿah in bank dealings.