Why an Interest-Free Economy was Instituted from Early Religious Zeal

Bibliographic Data

ID22023905
AuthorsRomi Adetio Setiawan (0000-0002-0170-7329, Western Sydney University, corresponding author)
Year2021
Volume6
Issue2
Pages31-48
Publication date2021-08-20
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAustralian Journal of Islamic Studies (JOURNAL)
Journal identifiersISSN: 2207-4414 • E-ISSN: 2207-4414
PublisherIslamic Sciences and Research Academy (PUBLISHER)
DOI10.55831/ajis.v6i2.347
OpenAlexW3195372652
LanguageEN
Citations received1
References cited3

At the end of 19th century, the Muslim scholars realized that the current banking system and economy was interest-based (riba) in all forms of transactions whether commercial or non-commercial. After the 20th century, proponents of Islamic economics put forward the establishment of a modern banking system that adhered to sharia principles and banned all forms of riba. It is important to note that the restriction on interest (riba) was also prevailed even among the non-Muslims and the origins of interest prohibition can be traced back to the Jewish and Christian faiths. However, the issue of prohibiting interest in modern financial system is still a matter of debate among Islamic jurists and this often cause confusion and inconsistency as to which the case of riba can be applied. This article argues that, whereas riba is expressly prohibited in all aspects of religion in the classical religious context, the modern practice of the interest system in Islamic finance is still debated in the context of contemporary society

Confusion · Economics · Islam · Islamic banking · Islamic economics · Judaism · Law and economics · Political science · Sharia · Theology · Usury · History · Islamic Finance and Banking Studies · Islamic Studies and History · Law · Marriage and Sexual Relationships · Philosophy

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