Perspectives on Fractional Reserve Banking and Money Creation/Production through the Lenses of Legal and Religious Moral Precepts and Ethics
Perspectives on Fractional Reserve Banking and Money Creation/Production through the Lenses of Legal and Religious Moral Precepts and Ethics
Author(s): Mejd Aures BenlalaSubject(s): Human Rights and Humanitarian Law, Law and Transitional Justice, Law on Economics, Canon Law / Church Law
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: commercial banks; fractional reserve banking; Islamic banking; legal and religious precepts; money creation;
Summary/Abstract: Today’s financial and banking systems are built on fractional reserve banking. This article sheds light on the role of commercial banks with regards to money creation/production under this system of fractional reserve banking. After exploring the nature of the process of money creation/production, the research paper diligently scrutinizes this process through the lenses of legal and religious moral precepts and ethic. The article concludes, with solid supporting arguments, that money creation/production under fractional reserve banking is immoral, ethically wrong and harmful at both individual and societal levels, with numerous legal and religious violations at its core.
Journal: Perspectives of Law and Public Administration
- Issue Year: 12/2023
- Issue No: 1
- Page Range: 5-30
- Page Count: 26
- Language: English