Editing Islamic banking and finance (section)

===Time value of money===
The [[time value of money]]{{sfn|Khan|2013|pp=200-203}} – the idea that there is greater benefit in receiving money now rather than later, so that savers/investors/lenders should be compensated for delayed gratification – has been called one of the "most significant" arguments in favor of charging interest on loans.{{sfn|Khan|2013|p=200}} As such, some Islamic finance supporters have opposed the concept, arguing that some consumption – such as eating – can only be done over time, and discounting for time encourages negative outcomes such as unsustainable production like [[desertification]], since the desertification comes in the discounted future.<ref name="irfan-196">{{cite book |last1=Irfan|first1=Harris|title=Heaven's Bankers: Inside the Hidden World of Islamic Finance|date=2015|publisher=Little, Brown Book Group.|page=196 |url=https://books.google.com/books?id=uJ3ABAAAQBAJ&q=nizam|access-date=28 October 2015|isbn=9781472105066}}</ref> 
However, since Islamic banking also calls for rewarding delayed gratification in the form of "return on investment" on both profit-sharing and credit sales, Islamic scholars and economists have tended to insist that time value of money is a valid concept "provided the rate of discount is the 'rate of return' on capital rather than the rate of interest," a position critics find specious.{{sfn|Khan|2013|p=200}}<ref name="Zarqa-1983">{{cite book |last1=Zarqa |first1=M. Anas |date=1983 |chapter=An Islamic perspective on the Economics of discounting in project evaluation. |title=Fiscal policy and resource allocation in Islam |editor1=Ziauddin Ahmed |editor2=Munawar Iqbal |editor3=M. Fahim Khan |location=Jeddah |publisher=International Centre for Research in Islamic Economics, King Abdulaziz University; and Islamabad: Institute of Policy studies}}</ref><ref name="M.F.Khan-1991">{{cite journal |last1=Khan |first1=Muhammad Fahim |title=The value of money and discounting in the Islamic perspective |journal=Review of Islamic Economics |volume=1 |issue=2 |pages=35–45}}</ref><ref name="TVMCiIF2009">{{cite journal |last1=Ahmad and|first1=Abu Umar Faruq|last2=Hassan|first2=M. Kabir|title=The Time Value of Money Concept in Islamic Finance|date=2009|journal=The American Journal of Islamic Social Sciences |volume=23 |issue=1 |url=http://iefpedia.com/english/wp-content/uploads/2009/11/The-Time-Value-of-Money-Concept-in-Islamic-Finance.pdf|access-date=31 August 2016}}</ref>