About the Content of (Interest) and Banking Transactions

Money-lending or interest as social and economic phenomena refer to the previous era of Islam.
Scientifically interest is the value of currency for financial use which is creditor gives to the debtor

Mohhamad Chia

Money-lending or interest as social and economic phenomena refer to the previous era of Islam, at that time the Jewish and other nations had used for their financial transactions, but when the Islam religion would appear, the drawback of that transaction had been discovered by the wholly Quran.

Scientifically interest is the value of currency for financial use which is creditor gives to the debtor. However, in accordance to Islam religion, the wholly Quran has focused on interest accurately and explained about the penalty for whom done such a kind of dealing. At that time Arab populations would sell staffs to people in debt but they gave a duration to the borrower if the borrower couldn’t return the debt on time the sailor increased the price in order to extend the loan duration.

According to the prophet hadith, those who give material to someone after that the loaner returns the same material to the lender but with an extra fee like gold, for both sides, this process accepts as an interest (Riba).

In the earlier times, the lenders didn’t afraid of bankrupting because the borrower would return the same material with its extra such a piece gold or silver, etc. instead of some notes about forbidden the process, I will explain them in the following points:

1-Interest is a kind of trading on the basis of demand and exposure, even other transaction will follow the same rule.

2-Prohibiting interest at the fundamental era of Islam was for destroying the economy of other religions particularly Jewish, conversely, Islam economy is in detrimental at the present time because the transactions have been globalized; it is not between two people.

3-The Islamic countries are doing the same business but in different ways like buying goods while the sailor puts extra 10% till the borrower return the rest of the money, which looks like cheating.

4-If there was a rule that prohibited money at the houses people haven’t hidden their money but most of the people afraid of saving their deposits in the public banks due to the unrest. Sometimes the political situation of a country will change and the money will lose its value, for example, Iraq in 2003.

5-Currently, the government organizes the dealing with interest through a legal framework by using the interest of government banks to the public services locally and internationally.

6-Prohibiting the banking transaction is opposite the economic principles and will stop the trading sector. People keep their money at their houses because of lacking trust to the public banks and avoiding of Haram deal.

7-If a person gives money to an investor for duty, it needs trust, then nothing will achieve as financial evidence internationally whereas in a few Islamic countries acceptable.

8-Currently, the world follows the capitalism system even this system will destroy the individuals; also, localism is opposite capitalism but internationally remains weak.

9-If an alternative of interest does not find the class system will develop because no changes happen between the life of poor and riches.

10- The definitions have made for interest and currency at that time were different from now because at that time the prices had been stabilized, people didn’t take their gold, wheat, silver, etc. at risk. However, the finance currency is totally different today because there is no guarantee for losing any currencies value with nonstop fluctuation.

Viewer 21