Islamic banking and interest a study of the prohibition of riba and its contemporary interpretation

• Main Author: Saeed, Abdullah (Author)
• Format: Unknown
• Published: Leiden E.J. Brill 1996; ©1996
• Series: Studies in Islamic law and society v. 2
• Subjects: Banking law (Islamic law); Interest (Islamic law); Murabahah
• Online Access: Click Here to View Status and Holdings.
• Physical Description: vi, 169 pages illustrations 24 cm
• Bibliography: Includes bibliographical references (page 153-164) and index
• ISBN: 9004105654
• ISSN: 1384-1130

This important book critically examines the traditional interpretation of riba (translated as usury of interest) and the attempts of modern Islamic banks to put that interpretation into practice. The first part of the book examines the prohibition and interpretation of riba in Islam, as well as the controversies surrounding it. The second part examines the alternatives to interest-based financing utilised in Islamic banking and the problems associated with such alternatives with particular focus on mudaraba, musharaka and marabaha . The book questions the legalistic approach to the interpretation of riba and argues for a moral understanding of the issue in the light of the authoritative texts of Islam and the lessons learnt from the Islamic banking experiment.