Banking and Interest
Section: Misc. Islamic Books
By: M. Moatz Al-Hallak
Buy this Book
In the name of Allah, the most Merciful, the Ultimate Bestower of Mercy
BANKING AND INTEREST
A Close Examination of the Azhar's Verdict
The Azhar Institute of Islamic Research has announced that interest which banks give to depositors is permissible. This came in response to a question from a client of the International Arab Banking Corporation.
The booklet provides both the text of the question and the response of the Institute of Islamic Research. Thereafter, follows a detailed commentary from the Assembly of the Muslim Jurists of America on this precedent-setting ruling. Undoubtedly, such a ruling represents a serious deviation in the known practice of either Al-Azhar or any other existing jurisprudential institution. In essence, the announcement contradicts all that these institutions have agreed upon regarding the clear-cut prohibition of interest given by banks. The first and the most senior of these institutions which affirm the prohibition of the banks' interest is the Institute of Islamic Research itself. 1t passed a resolution on this matter by consensus during its conference in Cairo in 1385 A.H. (corresponding to 1965). The conference was attended by representatives from 35 Muslim countries.
We ask Allah to protect us from error. May He guide us to the truth in speech and practice.
Aims of the Assembly of Muslim Jurists In America (AMJA)
- Issuing Islamic verdicts including those regarding new incidents and issues.
- Establishing a plan for the preparation of Islamic research and studies pertaining to the affairs of Muslims residing in American society.
- Analyzing and assessing all that is publicized about Islam and Islamic heritage by the media.
- Cooperating with Islamic financial institutions to prepare research and studies and to respond to their requests for Islamic verdicts and consultation.
- Conducting training courses for Imams and directors of Islamic centers to address various jurisprudential issues.
- Supporting cooperation between other jurisprudential institutions and entities.
- Examining naturalization issues.
- Supporting the' activities of Islamic arbitration committees established by different Muslim communities in the West and preparing a reference of the jurisprudential rules and regulations to be utilized by them.
- Establishing a fund for Zakah and social solidarity within the legal limits and permission of the appropriate authorities.
Some Special Features of the Assembly
- Specialization: All the members are Ph.D. holders in Islamic Law.
- Neutrality: It belongs to the Muslim Ummah, away from partisan and contemporary organized groups.
- Comprehensiveness: It combines scholars who not only are expects in Islamic Divine Law or other specialties, but also have an understanding of the realities of current affairs.
- Cohesiveness: It has a permanent committee for issuing verdicts comprising nine members who hold Ph.Ds in Islamic jurisprudence and legislation.
- Connections: It has a committee of advisors for its verdicts, comprising eight of the major scholars of Islamic jurisprudence from the Ummah to whom the permanent committee refers as needed.
- Moderation: Its Islamic verdicts mediate between extremism and neglect.