Wasatiyyah Values Appreciation in the Syariah Governance as Consumer Understanding Education Mechanisme towards Islamic Banking System

Abstract

The concept and values of wasatiyyah are fundamental in Islamic banking practice as the syariah
law has delineated basic muamalat principles as an operation guideline for the banking industry.
So that, all kind of extreme characteristics may be prevented. The principles of wasatiyyah prohibit
any element which overlooks the permitted limit namely gambling, uncertainty (gharar), usury,
fraud and so on. These elements have to be avoided in life because they were clearly prohibited by
Allah SWT due to their oppressive nature especially towards the unfortunate such as the poor or
low-income group. This prohibition is also attached with the heavy intimidation in the hereafter.
The Islamic banking system upholds the concept of wasatiyyah through the values of fairness,
trust, transparency and accountability which are instilled through the syariah governance system.
The appreciation of these values is proposed to be a part of the new curriculum for the financial
awareness subject has been presented by the Malaysia government in the 13th Parliamentary
session. It is important to educate and enhance the understanding of the public especially the young
about the Islamic banking system as an alternative to avoid the prohibited conventional banking
system.