Ethics in Islamic Banking

Observance of ethical principles in Islamic banking means performing the economic works and activities so that not incur any loss to the others or not violate the social benefits. In the Islamic banks formed based on Islamic ethics, the main subject is not competition on the price, but they emphasize on the unique quality of services they provide. Such banks are bound to ethical principles. Attention to the clients’ status and improvement of relations between serving procedure and client are assumed as characteristics of this system. They shall have very close communication and relationship with their clients and use a convincing ethical reasoning for justification of their business styles; and instead of current advertising of banks, ethical training applicable on Islamic financial affairs is emphasized. In the ethics-based banks, upon changing the requirements and demands of human societies, the necessity of resorting to the information-in addition to client belief is felt. Islamic banks ought to convince their clients about their innovative financial services advantages and show that these services and products are compatible to the lawful rules, and yet are related to the new business conditions. The research is a developmental-applied study. This study is applied based on mixed and case-background method, and using a group of academic and statistical techniques, interpretivistic approach, qualitative and quantitative and combined data. The study method is explained based on Delphi procedure and ethics promotion and decline of ethics in Islamic banking of Iran is analyzed. At end, the results of this study are described and analyzed.