How Ethical is Islamic Banking in the Light of the Objectives of Islamic Law?

Islamic banking is based on moral foundations that make it distinct from conventional banking. Some argue that because of its foundation in Islam, Islamic banking may represent a more morally appealing alternative. Yet, evidence shows that this is not the case. Indeed, the current practice of Islamic banking has not been able to achieve its goals which are based on Islam's moral values: to enhance justice, equitability, and social well‐being. This essay examines the extent to which Islamic banking is ethical and concludes that the practice of the industry does not seem to be de facto ethical from the Islamic perspective of ethical values. It only consists in trading the same instruments of conventional banks without genuinely enforcing Islam's ethical vision. The practice of Islamic banking misrepresents Islam and does not contribute to solving social problems. The interaction between maqasid al‐shari?a (objectives of Islamic law) and qiyās (deductive analogy) provides a supplementary tool for interpreting the failure of the prior in terms of the practical misuse of the latter by Islamic banks. This essay provides an interpretive approach to the current debate about why Islamic banking has failed and suggests ways to move cautiously in the future.     

A measure of interrelationship for overlapping groups

A coefficient of interrelationship between overlapping groups that avoids indeterminacies inherent in the construction of fourfold tables for such purposes and, at the same time, is relatively insensitive to the absolute magnitude of marginal totals of fourfold tables, is developed. Under assumptions that are consistent with the objectives of organizational analysis, this coefficient is shown to be equivalent to a product-moment correlation coefficient. The advantages and limitations of this coefficient are pointed out. A numerical example giving computational procedures is presented.This measure was developed in connection with a study made by Dorothy C. Adkins (1). Her influence in the development was felt in many ways. The article was prepared while the author was employed at The University of North Carolina.     

Realistic affective forecasting: The role of personality

Affective forecasting often drives decision-making. Although affective forecasting research has often focused on identifying sources of error at the event level, the present investigation draws upon the “realistic paradigm” in seeking to identify factors that similarly influence predicted and actual emotions, explaining their concordance across individuals. We hypothesised that the personality traits neuroticism and extraversion would account for variation in both predicted and actual emotional reactions to a wide array of stimuli and events (football games, an election, Valentine's Day, birthdays, happy/sad film clips, and an intrusive interview). As hypothesised, individuals who were more introverted and neurotic anticipated, correctly, that they would experience relatively more unpleasant emotional reactions, and those who were more extraverted and less neurotic anticipated, correctly, that they would experience relatively more pleasant emotional reactions. Personality explained 30% of the concordance between predicted and actual emotional reactions. Findings suggest three purported personality processes implicated in affective forecasting, highlight the importance of individual-differences research in this domain, and call for more research on realistic affective forecasts.     

Dimensions in data: testing psychological models using state-trace analysis

Cognitive science is replete with fertile and forceful debates about the need for one or more underlying mental processes or systems to explain empirical observations. Such debates can be found in many areas, including learning, memory, categorization, reasoning and decision-making. Multiple-process models are often advanced on the basis of dissociations in data. We argue and illustrate that using dissociation logic to draw conclusions about the dimensionality of data is flawed. We propose that a more widespread adoption of 'state-trace analysis'--an approach that overcomes these flaws--could lead to a re-evaluation of the need for multiple-process models and to a re-appraisal of how these models should be formulated and tested.     

Recognising what you like: Examining the relation between the mere-exposure effect and recognition

The perceptual fluency/attributional model of the mere-exposure effect proposed by R. F. Bornstein and P. D'Agostino (1992) predicts that when recognition of a previously presented stimulus is above chance, feelings of fluency associated with that stimulus are discounted and thus the amount of fluency (mis)attributed to liking is reduced. This correction process results in smaller mere-exposure effects for supraliminal stimuli than for “subliminal” stimuli because when recognition is below chance participants are unaware of the source of fluency and they do not engage in correction. We tested this prediction in three experiments by presenting photographs of faces (Experiments 1 and 2) and polygons (Experiment 3) at varying exposure frequencies for 40 ms and 400 ms durations. Contrary to the prediction of the model, a significant mere-exposure effect was only found when recognition performance was at its highest level. Furthermore, across the three experiments liking and recognition were positively correlated.