Prohibition of Riba interest and its philosophy : ethical issues in the prohibition of Riba

Fatawa Question

[Question one] : Al Salam Alaykum Wa Rahmatu Allah Dear Dr. Kahf I hope this email finds you well. I am Zainab Radhi, a law PhD student at the University of Kansas. Most of my research related to Islamic economic System and Finance. I have had the honor of reading most of your online articles with regard to issues of Zakah and Waqf, and I believe you are doing a wonderful job that benefits many researchers in the world. I am currently writing an article with regard to the "prohibition of Riba", however I am not looking at it from a purely religious view, but a morally and ethical one as well. I understand this might not be your area of research but I was wondering if you would not mind help me rebuttal some arguments in favor of Internets and Riba or maybe refer me to someone whose area of research would be related to that topic. Thank you and best regards [Question two] : Dear Professor Monzer, I hope this email finds you well. Thank you so much for your reply, I was so happy to hear back from the person I have been reading his articles for the last 4 years. I have read your article "Maqasid al Shari’ah" and I have two questions which I will be very grateful if your time will allow answering them. 1) In your article you based your argument on the assumptive that debts are a kind of asset that is not able to grow because of its abstract nature. My question is ; is this a legal rule or is it based on Shari ? Rule and if so what is it ? Also, how about if I borrow $ 100 and invest them and make them $ 200 wouldn't the lender be able to say that his loan has in fact "grown" to 200, what would be the counter argument here ? 2) I usually am faced with two arguments that I am finding it hard to counter : A) Interests are in fact good for the borrowers for the simple reason that it is better for someone facing financial difficulties to borrow money and invest it and earn 50 % with 50 % interest than not to borrow any money and make nothing. B) If the lender does not charge interest , he / she will be harmed by freezing his capital for 5 years, for example, with the lender while he could have invest them and make profit. This fact discourages any lender from lending his / her money. Those arguments are not supposed to be made by the government since governments should always work for the best interests of its people, they are put by capitalists private banks, which is the case in all the US banks. I highly appreciate your help and support. Thank you and best regards Zainab

Fatwa

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Publication Date

2011-06-24

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Moral aspects
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-729581

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