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Islamic Finance




Ihsan


Arabic (إحسان) for benevolence/ doing good and also doing one’s work (ibdah and mundane endeavors) with excellence and perfection. In the realm of Islamic banking and finance, Islamic financial institutions (including their employees) are required by shari’a to observe ihsan in all what it does/ they do to the extent possible. An example of ihsan is qard al-hasan, which is a contract (aqd) of irfaq or ihsan.

Ihsan is a commendable, not mandatory (fardh), act. However, in a religious domain, ihsan is referred to as performance of religious duties (in comparison with adl, which means in this context monotheism).



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