Implementation of Islamic banking in Afghanistan and its analysis from the viewpoint of fiqh

This research evaluates the Islamic banking in Afghanistan from the viewpoint of Islamic Fiqh. To be able to understand the functioning of Islamic banks in Afghanistan, we aimed to detect whether the related laws and regulations were made conforming to the principles and objects of Fiqh and whether Islamic banks operate in compliance with these laws and regulations. We could not find another research analyzing the Islamic banking in Afghanistan as we write this paper. So, we can say, it is the first of its kind. During the conflict that lasted for more than thirty years in Afghanistan, banking system was rendered inoperational. In 2002, the invasion of international armies in Afghanistan paused the conflicts for a while. Efforts to re-establish the order of the state began. To make the Afghan banking sector operate in compliance with international standards, the banking law which consisted of 101 articles was issued in 2003. The 3rd article of this law authorizes the Central Bank of Afghanistan to regulate which types of activities banks can conduct. The Central Bank of Afghanistan, using this authority, has allowed conventional banks to offer Islamic banking services in particular divisions, i.e. , in "Islamic windows". It was observed that the Islamic banking system did not improve following this course because the regulations regarding Islamic banking were not explicitly written in law. To fill this gap, the banking law has been reformed and regulations on the operation of Islamic banking were added to the law in 2015.