In this seminal paper published in the International Journal of Law and Management, Professor Dr. Abul Hasan M. Sadeq and his colleagues address a significant gap in Islamic economic literature: the dynamic relationship between trade and interest rates (as shadow rates) specifically concerning the bank-savings function.

Key Findings & Methodology:

• The Bank-Savings Problem: The research argues that traditional bank-savings often cause a withdrawal from resource mobilization, rupturing the positive complementarities required for Maqasid-as-Shari’ah (the objectives of Shari’ah).
• Trade vs. Riba: By utilizing the Tawhidi ontological law of participatory oneness, the authors explain how trade and real economy variables are positively complementary, whereas interest (Riba) acts as a coterminous variable that hinders organic economic growth.
• Epistemological Premise: The work provides a deep analytical and empirical explanation of how a trade-based system fosters money-finance-real economy linkages that interest-based savings systems inherently break.

This paper is considered highly original as it introduces a new substantive instrument—the bank-savings function—into the trade vs. riba debate, providing a rigorous methodological basis for interest-free finance.

Core Concepts: Riba Avoidance, Bank-Savings Function, Tawhidi Epistemology, Resource Mobilization, Maqasid-as-Shari’ah, Trade Dynamics, AUB.