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Riba And Exploitation
As salamu alaykum
1. Riba is declared haram as it results in exploitation.
2. If # 1 is true, how can an average consumer who receives interest on a savings account exploit a bank? Modern banks hold billions of dollars in assets and make much revenue yearly by lending money (charging interest) and providing asset management services. Receiving interest on a loan from an ordinary person is understandably riba, but how the same could be said for a financial institution.
3. Every year inflation causes a currency to depreciate, and there’s no easy way (without taking any risk) to recover that monetary loss except keeping your money in a saving account. (I understand that there is NO riba if inflation and interest rates are identical).
I would appreciate your insight on the points raised above.
Thank you
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2 Replies
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Riba And Exploitation
updated 2 years, 4 months ago
2 Members
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Replies
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The underlying principle in the prohibition of riba is the moral obstacle of not unjustly consuming the property of others (Quran 2:188). In other words, one is not supposed to consume wealth that doesn’t belong to him. Riba is just a single application of the principle, as there are many other implications of it. For detailed understanding of riba please watch all the videos in the following thread:
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Thank you @faisalharoon
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