[Source of credit]

Fatawa Question

Dearest Dr. Monzer, I pray to Allah that this email finds you and your family in the best state of Iman and health. Could you kindly reply to the following question ? Providing a source of credit while Riba is Haram : As-Salam 'Alaykum. As is the example of Christian Europe, in particular Italy where the practice of lending at interest was forbidden by Christian authorities, there were problems in generating capital. The solution to this problem was that Jews were the source of credit because of the fact that they are prohibited to lend at interest to one another, but to non-Jews there is no prohibition. In essence the Jews were "flush with cash" from Riba and the Christians saw them as a strategic asset who could provide something that was forbidden in Christian law at that time. Presuming that under the Islamic system we are to use gold and silver and possibly platinum as money, what is the solution to the problem of securing sources of credit without resorting to the practitioners of Riba as that source ? Shall we monetize other scarce metals like platinum ?

Fatwa

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Publication Date

2011-04-15

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Financing
• Credit
• Bank loans

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-732853

• APA
• MLA
• AMA