Importance of principles of Islamic jurisprudence (Usul Fiqh) in Islamic banking product structuring

The remarkable trend upon Islamic finance whose objective is to meet human needs of
the Islamic financial sector has experienced increasing attention both from practitioners and
academics around the globe. This paper is to present and analyze the most important
principles of fiqh where the fiqh has been derived from Quranic verses and from the sayings
of the Prophet Mohamed (PBUH) and usul al fiqh regarding Islamic banking products,
presenting also difference between fiqh and usul al fiqh related to actual practices of Islamic
banking.
This study focused on systematic reviewing of literatures regarding to the topic of
Islamic jurisprudent principles in structuring of banking products meeting Shariah
requirements and the ideas of contemporary as well as traditional scholars by focusing on
the major fiqh principles with reference to the some cases applied in Islamic banking
practices.
The results showed Islamic banking developed products that meet customer needs and
Shariah compliance including Islamic deposit, investment and financing. The fiqh principles
applied in Islamic banking products take account of Wadiah Yad Dhamanah , restricted and
unrestricted Mudarabah, Tawarruq, Murabahah , Ijarah Muntahiya Bittamleek, Salam, Sale
and Lease back, Musharakah Mutanaqisah, letter of credit (LC) based on
Wakalah/Murabahah ,Musharakah and Set-off (Muqasah)