​What is Financial Service System ? 
The financial system connects those who can save money with those who can spend it. 

The financial services sector of the economy provides products and services to both savers and spenders inside the financial system, as well as acting as a financial conduit.

Individuals, households, companies, and governments that have money to invest are referred to as savers. Spenders can be individuals, companies, or governments.

For instance, people take out loans to cover housing costs, educational costs, and other costs. Businesses take out loans to purchase equipment, real estate, and structures. Governments borrow when their tax revenues fall short of their budgeted expenditures.

Kembara Finance - Qiyas 
​​Qiyas is synonymous with analogous thinking.
Analogical reasoning, also known as Qiyas, is the tool that is both the most important and the most useful among all of the secondary sources. Generally speaking, qiyas refers to the legal approach of extending the law beyond what is specified in the official legal sources. qiyas is a legal procedure. It is not the creation of an entirely new decision; rather, it is an extension of a precedent that was already established. In order to accomplish this, it is required to either make a comparison between what is discussed in the legal texts and a new issue or to create a parallel between the two. This is known as ‘Illah or ratio decidendi, loosely
translated as the ‘reason’. The verdict (Hukm) of the original case is applied to the assimilated case once it is determined that both the original case and the assimilated case involve the same "reason." As a direct consequence of this, the solution to the new problem is the same as the one to the original one. The danger of becoming intoxicated is the rationale behind the prohibition of wine. The legal basis for strict needs to exchange some food products pertains to the nature of these goods, specifically main foods rather than individual items, as described in the relevant Tradition of Prophet Muhammad. This is the case when there are strict obligations to exchange certain food items. In the case of Donoghue v. Stevenson, it was decided that negligence has taken place when someone has a duty of care but has breached that obligation, which as a result has caused harm to another party. This was the holding of the court.
Qiyas is the most widely accepted instrument and legal procedure, despite the fact that it is founded on reasoning and has an inherently speculative quality. In comparison to other methods of legal reasoning, this one is more methodical and has a lower degree of arbitrariness. This is because its internal system and processes remove the need for the application of Qiyas to rely solely on one's own discretion or whims, which is why it has this effect. The relevant "reason" or "illah" that is applicable in the appropriate context can be attributed to the meticulous technique and methods that were utilized to establish it.

Not only does Qiyas help the jurist uncover and discover the correct 'Illah, ratio decidendi, or reason that is included in the textual evidence, but it also helps the jurist make sure that this ratio is applied to the appropriate context and circumstance. This is done to prevent the finding of an inappropriate cause or the identification of a suitable explanation that has been inappropriately applied to an inappropriate scenario. It is abundantly clear that discovering the appropriate cause does not automatically ensure the appropriate application of the legal rule to a new circumstance. As a result, the most important thing is to identify the aspect of resemblance that justifies the transfer of the rule from one situation to another, because it is this aspect that decides whether or not the conclusion is correct.

Kembara Islamic Finance - Ijma 
​Ijma' refers to the consensus reached by Muslim jurists.
The first instrument or method of Ijtihad is referred to as Ijma'. This phrase refers to the agreement reached by Muslim jurists on a specific legal matter at a specific moment in time following the passing of the Prophet Muhammad. When a consensus has been reached, the authority it represents becomes obligatory for Muslim communities. It must be upheld unless the foundation for arriving at that consensus has changed as a result of a new discovery of principles or a new Ijtihad, which is more compelling. In that case, the new basis must take precedence. It is important to highlight that reaching a genuine and technically sound Ijma, also known as a consensus, is not an easy task because it necessitates the unanimity of consent and agreement of all qualified jurists at a specific time, on a specific legal matter that calls for a unified stance. Ijma is likely to be the least effective method of ijtihad in current times, particularly in the field of Islamic commercial law. This is due to the fact that this component of Islamic law is extremely dynamic, making it impossible to arrive to a consensus on many occasions.
However, the decisions and resolutions on Islamic finance that have been issued by international Islamic bodies such as the International Islamic Academy of Fiqh of the Organisation of the Islamic Conference (OIC) and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) could be persuasive even if they are not binding. This is because these decisions reflect the views of the majority of contemporary Muslim jurists on a particular legal point. Even though they do not meet the stringent requirements of a technical consensus, the decisions of these two groups are highly accepted and acknowledged by a large number of authorities and stakeholders in modern Islamic banking.

Kembara Islamic Finance - Ijtihad, also referred to as legal reasoning
Ijtihad, which literally translates to "legal reasoning," is the process of formulating laws in accordance with the teachings of the Qur'an and the traditions of the Prophet Muhammad.
Ijtihad is a type of legal reasoning that is used by jurists and scholars to arrive at what is believed, on the basis of their best efforts, to be the law as it was intended by the one who gave it to us, God Almighty. Ijtihad is responsible for interpreting all of the supplementary sources.

​In most circumstances, Ijtihad depends on the mental capacity known as ra'y, which can be translated as "a considered opinion." Ra'y possesses a nature that is adaptable and active. It makes its decisions by applying the spirit, wisdom, and fairness of Islam to each individual instance. It is the opinion of a person who has given something careful thought and attempted to maintain a level of objectivity throughout the process. The following are examples of subsidiary sources: Qiyas (analogical reasoning), Istihsan (juridical preference), Maslahah Mursalah or Istislah (unrestricted public interest), Sadd al-Dharai' (stopping the means), 'Urf (customary practice), and Istishab (presumption of continuity). All of these phrases have some sort of legal connotation, and they are referenced in Arabic. In the following paragraph, you will find an explanation of each of these concepts, along with its English translation and a brief illustration. Students are strongly advised to use the glossaries if they need assistance comprehending any of these terms.

​All of the aforementioned subsidiary sources are explored in Islamic law as potential bases for law finding in situations that are not expressly covered by the various legal books. In most cases, the purpose of all of these sources is to arrive at a conclusion as a result of thought, reflection, and an honest search for the truth in situations in which there are contradicting indicators or none at all. Because it was arrived at by a knowledgeable scholar after careful and conscientious thinking (Ijtihad), a considered view is enforceable within the realm of law in Islamic law. This is due to the fact that in Islamic law, a considered opinion is considered to be part of the law. If the interpretation or logic upon which it is founded is diligent and conscientious, then a tentatively created rule has the whole force of a bona fide rule of law. In other words, a rule that is only constructed provisionally has the full force of a rule of law.
As a consequence of this, it is possible to assert that a well-reasoned view is legally enforceable in Islamic law.

Kembara Islamic Finance - Categories of Sharia Sources 
There are two distinct categories of Sharia sources: revealed sources and non-revealed sources. There are only two sources that have been revealed: the first is the Qur'an, and the second is the teachings and exemplary conduct of the Prophet Muhammad, which are referred to as the Sunna. The legitimacy of the Sunnah as a source of Shariah, second only to the Qur'an, is established by the text of the Qur'an itself. The non-revealed sources of Shariah are generally founded in juristic reasoning and can take on a variety of forms. These forms include analogical reasoning (Qiyas), juristic preference (Istihsan), considerations of public interest (Istislah), and even broad consensus (Ijma) among the learned. "It is generally accepted that the non-revealed sources of Shariah are founded in juristic reasoning.

Islamic Finance - ​In Islam, the source of law is extremely important.

​The Holy Qur'an
In any legal system, the source of law is vital. The origins of Islamic law can be traced back to the revelation of the Qur'an, which contains legal concepts and injunctions on topics like as ritual, marriage, divorce, succession, commercial transactions, and penal laws.

The Prophet Muhammad's Traditions

Another divine source of Islam is the Traditions of the Prophet Muhammad, which is a record of all the Prophet Muhammad's sayings, actions, and tacit endorsements. The literature of the Prophet Muhammad's Traditions is comprehensive and covers a considerably broader variety of themes than the legal verses in the Qur'an. This is not difficult to understand because the Prophet Muhammad was frequently contacted by his companions and the community for his decisions on a specific instance or situation. The Prophet Muhammad responded to and handled these incidents either through the Qur'an or through his Traditions, both of which are considered divine in nature. In general, the Prophetic Traditions, like English case law, concern a specific fact or situation by recording an answer to a specific query or a remedy supplied for a specific grievance. Among other things, he was questioned by his community about the legality of Salam sales, which are forward sales or sales of deferred delivery against a cash payment in advance. He said that a sale is lawful if the asset to be delivered in the future is certain in its characteristics, weight, or measurement. The delivery time must also be determined.

Islamic Finance- Combined legal sources
Islam has united these two aspects in two divine sources of law, the Qur'an and the Prophet Muhammad's Traditions. The Qur'an contains both legal concepts and substantive law. The Qur'an, for example, states that an obligation must be fulfilled (chapter 5: verse 1). This is a fundamental element in Islamic economic contracts, without which the contract's integrity cannot be maintained. The Qur'an, on the other hand, mandates specific rules for each instance, such as the prohibition of interest (Riba) (chapter 2: verse 275) and the permissibility of providing collateral or a pledge to secure a loan or funding (chapter 2: verse 283).

In Islam, the source of law includes both overarching and comprehensive principles for universal applicability and detailed specific legislation for a given issue. The source of law in Islam is considered divine because it was revealed to the Prophet Muhammad by God Almighty. The entire Islamic legal system evolves and develops from this basis.

​Islamic Finance - The origins of the law
The core of Islam is that its ideas and ideals are derived from a specific source. In a legal sense, the term source has more than one meaning. The term source can refer to a system's originating wellspring.
For Islam and Islamic law, this source is the Qur'an, which is considered divine in nature. In the instance of judicial precedent in English common law, the source might also refer to the primary body of the law. It often refers to the sum of rules and powers structured in a structural hierarchy when used in the plural. The source of the law, in essence, is not the law itself. It is rather the source from which a law can be derived and extended. Simply expressed, the source identifies where a rule or legal argument originated.
However, in other instances, the divine source also contains substantive laws.
Both of them are known as sources; one gives proof, while the other provides law from which a legal concept might be drawn. This phenomena is comparable to how European civil law and English common law operate. European civil law is mainly based on established laws and statutes, whereas English common law is based on case law. The sources of law for European civil law and English common law are both legislative and case law.

​ Islamic Finance - The meaning of the term "source of law" in Islam
 The definition of Shari'ah
Shari'ah literally means "the path to the watering place." Muslims believe that Shari'ah is the clear path that believers must take in order to get guidance in this world and deliverance in the next. Shari'ah is a term used by Muslims to refer to the commands, prohibitions, guidance, and principles that they believe God Almighty has decreed to mankind.