In the Name of God, the Merciful, the Compassionate.
Remember William Shakespeare’s description of usury (interest) in his book ‘Merchant of Venice’, “a pound of flesh”. What an accurate and scientific description of interest, which is heavily relied upon by the conventional banking and financial system.
Riba (interest) is vehemently condemned in 4 different places in the Quran: 30 v39, 4v 160-161, 3v 130, 2: 275-279. We also have Biblical prohibitions of interest: Exodus 22:25, Leviticus 25:36, Leviticus 25:37, Deuteronomy 23:19, Deuteronomy 23:20, Nehemiah 5:7, Nehemiah 5:10, Psalm 15:5, Proverbs 28:8, Isaiah 24:2, Jeremiah 15:10, Ezekiel 18:8, among others.
Imagine taking a pound of your flesh to settle your cost of borrowing, you are dead. As far back as the 16th century AD, Shakespeare has been able to fathom out the evil of the interest-based banking regime.
The main purpose of banking and financial practices is to move resources from surplus areas to deficit areas. And this purpose has not been realized after donkey years of banking and financial practices of the current conventional banking system or the capitalist free-market economy.
The motive of the fractional reserve banking system is profit, regardless of the effects it may have on children, women or the aged. The poor have been stagnant. In fact, it has rather done the opposite; by enriching the already rich, since they always have the collateral (means) to obtain huge sums of cash loans from both local and international financial institutions, and impoverishing the already poor as they lack this means.
The most badly affected members of this interest financial regime are children, the aged and women folk.
Clarifying Widespread Misconceptions about riba (interest/usury), by Ibtihal Al-Khalifin of the International Open University
Claims such as ‘If you are buying your first house then you are allowed to buy it on interest’ or ‘Interest is the same as profit’ would only come from people who are misinformed regarding the true reality of riba. One must strive to avoid this horrendous sin with all the effort they possess in order to not bring the wrath of Allah upon them.
A serious misconception amongst people is that only those who directly deal in riba will receive punishment from Allah. However, we must reflect on this very important hadith: “Jabir said that Allah’s Messenger cursed the acceptor of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal.” Whether one is responsible for the recording of a riba-based loan and witnessing the transaction, or simply working in a conventional bank as a driver or even a guard, all are impermissible. A Muslim must only enjoin in good and working in this field implies that one approves of it.
The argument that ‘Interest is not the same as usury and that only usury is prohibited’ is a futile argument. Islam does not distinguish between a minimal and an exorbitant rate of interest, as both are equally prohibited. And Allah knows best.
YAHAYA ILIASU MUSTAPHA
The writer is an Islamic Banking and Finance patron and advocate in Ghana.
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