Document Details

Document Type : Article In Journal 
Document Title :
Distinguishing Financial Intermediation From Brokerage and Trading
التمييز بين مفاهيم الوساطة المالية والتمويل والمتاجرة
 
Subject : Discussion Forum 
Document Language : Arabic 
Abstract : The broker and the merchant – though different- provide ultimately the same economic function, namely: intermediation that reduces the cost of moving goods from their owners or producers to their customers. Brokerage gives rise to direct bilateral relationship between two parties to an exchange, with the broker only a catalyst, but trading gives rise to an indirect tripartite relationship, where the merchant is one of the parties. This applies to banking, which intermediates between surplus and deficit economic agents on the basis of “trading” rather than “brokerage” in financial resources. Tripartite banking intermediation provides what in Islamic juristic terms is called “public need” in economic life, a need which is more urgent than any catered to by commercial intermediation in goods. The challenges faced in organizing banking intermediation on non-interest bases does not justify reversion to financial brokerage which can never replace banking. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 10 
Issue Number : 1 
Publishing Year : 1418 AH
1998 AD 
Number Of Pages : 5 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
محمد أنس الزرقا MUHAMMAD ANAS ZARKAResearcher  

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