Hourani, Yasser Abdul Karim. “An Assessment of Aspects of the Imbalances of the Functional Relationship between Central Banks and Islamic Banks,” Year 4, Issue 16 (Spring 1419 AH/ 1999 CE), Pp. 99-130.

Abstract

Yasser Hourani’s article focuses on addressing the most important functional roles of the central banks in their dealings with Islamic banks, and explores the nature of the imbalances affecting the central bank's authority over the Islamic bank, the relationship between them, and the general functions of the central bank, as well as other functions associated with it. He evaluates these functions based on devised mechanisms of the Islamic bank. His study concludes the need for the central bank to become adapted to some mechanisms so as to conform with the requirements of Shariʿah, such as replacement of ribā-based (usury) surplus via legitimate forms, in addition to the need of the Islamic bank to contribute to solving problematic issues in accordance with the collective banking work mechanisms outside of the context of one region, in an affect to limit its need to resort to the regional central bank.