Prohibition of Riba and its rationale : is bank interest Riba ? : [1]

Fatawa Question

Assalamu Alaykum, My question is regarding "RIBA" and bank interest "fawayed". I heard these following opinions and would like to know the Islam opinion regarding them. Mainly they are trying to prove that Bank interest are not the "Riba" mentioned in Holly Koran. 1. The bank interest is a compensation for the inflation rates, e.g. Egypt interest rate is more than 10 % for Egyptian pounds while it's some 2 ~ 3 % for USD because the inflation in Egyptian pound is much higher than the American Dollar. Another evident comes from Canada where the interest rate is almost 0 % because of the economy stability there. Also if we save our financial assets in the form of Gold for example instead of bank notes, we will not be subject inflation as much as in bank notes case. 2. If the bank interest is not fixed or mentioned in advance, in this case- is it REBA ? e. g. For saving account type, you're able to withdraw your money at any time and still get some interest every 3 months, the client does not know what percentage of interest s / he will receive at the end of each 3 months "The bank does-not-say it's 2 % for example". 3. In Ayah in Holly Koran, Allah says in describing "REBA" that it's times of times "Ad3afan moda3afah", for the interest rate this is not the case, it is usually less than 10 %, is that interest the REBA meant in Holly Koran ? Please comment on that, Wa Jazakum Allah khayran for helping us in showing the right / Halal way.-Ahmed Notes : I have already reviewed the Fatwa bank, unfortunately it does not cover my questions

Fatwa

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Publication Date

2002-05-23

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Banks
• Islamic jurisprudence
• Interest
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-725642

• APA
• MLA
• AMA