Interest and banking is banned in Islam so how come so many muslims work in banks..and including myself?

Question

Further without interest or banking how is a business going to function? It is true that Islamic banking is in place but they have only changed the name from interest to profit...
Some Imams say that having connection with a bank is HARAM!!!
How come? Im again confused...pls explain

Answer 1

Thank you for your question. Part of the premise in your question is incorrect and the other part is simply mis-understood.

Banking is NOT haram in Islam. However hoarding is discouraged and the ancient Sufis used to give away everything by the end of the day, but that is another story. In fact the checking system that we use today was originally set up by Muslim traders so they would not have to carry large sums of cash when travelling between places.

As far as interest goes, both the taking and charging of interest on a loan is forbidden. However, a return on an investment is not, nor is entering into partnerships. So you are allowed to borrow money from a person in order to enter into some sort of business dealings and that person is considered a partner with equal risk of the money, you are allowed to pay him or her a return on that money as a partner in the venture.

I also am an Imam and my opinion of any Imam that says having a connection to a bank is haram is wrong and misguided. There was recently even an international council that decided that ATM machines and debit cards were allowed.

In the present day Islamic banking system this includes home mortgages and other types of loans in which the lender has an equal risk in the capital as does the borrower. You are right in that there is a profit made, but in this case the lender, being a part owner, is at an equal risk with the borrower for the loss of the asset.

Additionally, there are many, too numerous to mention here, customs of Islamic business conduct that come from Quran and Hadith which provide an environment for very ethical and fair practices.

Peace and Blessings,

Salim

Answer 2

Interest is not forbidden in Islam, "usury" in Islam is Haram, forbidden, and I am sure you know the difference between the two terms...you as a banker I mean.
So , as you say you are a Muslim, how much do you know about Economics in Islam.
Islam has laid the foundation of air tight economic rules and regulations to run any commercial business in a fair way to all .

Islamic banks can work much better in an Islamic country. Do you know any country on earth that adopt Islami rules and regulations at present?

A true Muslim , is the one who seeks knowledge about his religion through the proper means and then he goes out to teach the others.

I have many doubts about your question and intentions...!!!

Note:
For example, at present Islamic banks do not charge " overdraft charge" and the do not charge for "past due loans or installments"...as a banker, I take it you value what all that means..

Answer 3

interest charging in a bank or lending institution is haram. The islamic law forbids al those who get invovled in a transaction having interest, i.e. the principal, the borrower, the witnesses, those around who are aware of such transaction. Islamic banking does not derived its income from interest, but from other sources is ok, like buy and sell, service charges, profit and loss sharing in a business venture, consultancy fees, etc that involves no interest charges.

Answer 4

God has made interest forbidden for us for its usurps money from people. With interest, the poor get poorer, and the rich get richer. If you look at Islam, there is a constant attempt to de-stratify the classes and to spread wealth evenly. Every other verse in the Qur'an is give, give, give.

Answer 5

If you are truly a Muslim I'd suggest you not to ask such questions on Y!A. Because, infact, there is no well-learned Islamic scholars who answer here on Y!A. Here you may also find some wicked people who continuously try to provide misleading & false informations about Islam.

Your question about banking, other question about wearing trouser above ankle, are already discussed on well-known Islamic websites. For rulings on such issues you may visit sites which are made by proficient Islamic scholars, like:
http://islamonline.net
http://islamqa.com

For your immediate convenience, I'm giving you some links which talk about bank related issues:
http://www.islamonline.net/servlet/Satellite?pagename=IslamOnline-English-Ask_Scholar/FatwaE/FatwaE&cid=1119503543128
http://www.islamonline.net/servlet/Satellite?pagename=IslamOnline-English-Ask_Scholar/FatwaE/FatwaE&cid=1119503543480

Hope it helps. God bless.