The prohibition of riba (interest) in Islam has been a hotly discussedissue among contemporary Muslims since the 1960s. Since rihd is perceivedby a considerable number of Muslims to be bank interest, andalmost all banking systems in the world, including those of the Muslimworld, are based on interest, many Muslims are concerned whether it islawful. For those who regard bank interest as rihd, any increase in a loantransaction over and above the principal is rihd because it involves anincrease over and above the principal. They contend that the fiqhi interpretationof riba is the interpretation and must be followed. For otherMuslims, the prohibition of riba is related closely to the “exploitation” ofthe needy and poor by the relatively well-off, an element that, for them,may or may not exist in modem bank interest. These Muslims have arguedthat the fiqhi interpretation given to riha is inadequate and does not takeinto consideration the moral emphasis associated with the prohibition.This paper looks at a) the overall context of the Qur’anic prohibitionof rihd; b) how the term is used in the Qur’an, the Sunnah, and in thefiqhlliterature; and c) the lack of moral emphasis in the current debate.Riba and the Qur’an: The Context of ProhibitionThe Qur’an’s condemnation and ultimate prohibition of riba was precededby its condemnation of several other morally unacceptable forms ofbehavior toward the socially and economically weaker strata of theMakkan community. From the very beginning of the Prophet’s mission, ...
Bank Stability Index for Selected Countries with Dual Banking Systems
