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Comparative reviews of Islamic and western literatures on riba and usury: Illegal or Immoral?

Aisyah, Aripin and Akbar, Mohamed Aslam (2022) Comparative reviews of Islamic and western literatures on riba and usury: Illegal or Immoral? In: Internatinal Conference on the Integration of Knowledge in Higher Education (ICIOK 2022), International Islamic University Malaysia. (Unpublished)

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Lending money with interest is associated with riba and usury in Islamic banking. It is prohibited in Islamic law, as evident in the Qur’an and Sunnah. Most scholars agree that riba and usury are harmful to society, both spiritually and economically. One of the main reasons for its prohibition is that it would cause selfishness and affect a community's socio-economic justice. The prohibition of riba and usury has been in place for a long time, and different groups came to a single conclusion that it is not permitted, although as the economy developed, some have changed their arguments into accepting interest-based practices. This paper reviews the Islamic and western perspectives on the prohibition of usury, whether it is being discussed as an illegal act or immoral. The first part presents the historical background of how riba and usury came into place, from the Qur’anic revelation and its practice since ancient Greece time. The discussion is followed by the literature of some Islamic economic scholars and their views on the prohibition of riba, i.e., Borhan, Chapra, Ahmad & Hassan, Qutb, and Islahi. Also, the western view of the prohibition of usury is explained by Mews & Abraham, the Christian Church’s impression, and Vincent. This paper further analyses the reviews made by both Islamic and western scholars in the prohibition of riba and usury, highlighting their distinctions and similarities that forms today’s perspective on the issue, which leads to the findings that Muslims and non-Muslims not only share the exact moral origin but the same ends during the legal and moral conflict. All in all, interest is necessary to run the economy in modern society; however, the abolition of interest is a topic that is being debated more and more as the world continues to develop due to its adverse effects as well as its morally conflicting nature.

Item Type: Conference or Workshop Item (Slide Presentation)
Additional Information: 100899/9388
Uncontrolled Keywords: riba, usury, interest, illegal, immoral
Subjects: H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP469 Influence of other legal systems on Islamic law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Economics
Kulliyyah of Economics and Management Sciences
Depositing User: Dr Mohamed Aslam Akbar
Date Deposited: 10 Jan 2023 12:11
Last Modified: 10 Jan 2023 12:11
URI: http://irep.iium.edu.my/id/eprint/100899

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