Rahmatan lil ‘Alamin as a Meta-Ethical Foundation for Islamic Banking: Integrating Islamic Economic Philosophy, Maqasid al-Shari‘ah, and Digital Ethical Challenges

Abstract

This study aims to deepen the conceptual positioning of rahmatan lil ‘alamin within Islamic economic philosophy and to examine its relevance for strengthening contemporary Islamic banking ethics. Although rahmah represents the highest moral principle in Islam, the Islamic finance literature has largely confined it to a theological concept that is not fully integrated into institutional ethical frameworks. Employing a systematic literature review (SLR) of reputable articles indexed in Q1–Q2 journals and SINTA 2, this study develops a theoretical synthesis of the relationship between rahmah, maqasid al-shari‘ah, and Islamic banking ethics. The findings indicate that rahmah functions as a meta-value underpinning the maqasid; however, this relationship is frequently fragmented in contemporary scholarship, resulting in Islamic banking ethics exhibiting a legalistic bias that prioritizes formal compliance over moral depth. The study further reveals that customers’ expectations for humanistic ethical practices have not been fully met, while digitalization introduces new ethical challenges such as algorithmic bias, data exploitation, and digital injustice that remain insufficiently addressed by classical fiqh-based frameworks. This research proposes an integrative epistemic model that positions rahmah as the moral foundation of maqasid, Islamic ethics, and the practical implementation of Islamic banking ethics, encompassing service ethics, governance, and digital ethics. This framework contributes theoretically to the enrichment of Islamic economic philosophy while offering practical implications for the Islamic banking industry in strengthening moral differentiation and enhancing public trust.