Author: A.L.M. Abdul Gafoor
Publisher: A.S. Noordeen (2005)
Pages: 68 Binding: Paperback
Description from the publisher:
This book traces the history of interest, its relation to usury and riba, the origins of dogmas and theories that prohibit or justify its practice, and the meaning of interest in the modern setting of banking. A general model of interest is presented in which several scenarios - from person-to-person lending to modern commercial bank lending - become sub-models. This helps one to understand the meaning of modern bank interests in relation to usury and riba. In turn, this enables one to separate riba from the operational costs of a bank and thus to devise a riba-free system of commercial banking that is both viable and compatible with the conventional one.
By looking at the needs of society, three different kinds of needs are identified: investment and finance, banking and loans, and charity. It is shown that they each need be handled using a different technique. Moneylenders offered one solution for all three needs because it was to their advantage, but the society has to cater for larger concerns and therefore must offer more appropriate solutions. The Qur'an points out these different needs and indicates different techniques to suit each need. It is for today's Muslims to translate them into present-day "language" and set up appropriate institutions. Outlines of such institutions are also presented in this book. Articles elsewhere expand on these outlines.