The nature of Riba and rationale of prohibition : interest free commercial banking

السؤال

As Salaamu 'Alaikum Wa Rahmatullah, I have been reading the book Interest free commercial banking by A.L.M. Abdul Gafoor. and in it he separated the cost of borrowing (CoB) into a few parts i.e. 1. Interest 2. Service Cost 3. Overheads Cost 4. Risk Premium 5. Compensation for inflation 6. Profit. In his explanation of the above he said the following : the bank, being a commercial profit making concern, should receive some profit. Naturally it should be charged to the customer and therefore there should be no objection to including it in the cost of borrowing. The question is, on what basis ? If we rule out charging a percentage of the loan, because it may smack of interest, what are the other alternatives ? A good practical alternative seems to be to fix it as a percentage of the services and overheads costs, increase these costs accordingly and, call them services and overheads charge respectively. (p9) This seems to be extremely similar to the interest system. Can you please offer your thoughts. Yours in Islam

جواب الفتوى

أنقر هنالمشاهدة هذا المحتوى

تاريخ النشر

2006-07-18

التخصصات الرئيسية

العلوم الاقتصادية والمالية وإدارة الأعمال
الدراسات الإسلامية

عدد الصفحات

2

نوع البيانات

فتاوى

لغة النص

الإنجليزية

رقم السجل

BIM-790192

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