The Riba-Interest Equation and Islam: Reexamination of the Traditional Arguments

Abstract

There is no controversy that Islam prohibits 'riba.' However, the meaning and scope of the concept have generated impassioned controversy, especially on whether riba and bank interest are to be considered equivalent. The focus of this essay is not on whether interest is riba, a topic that often gets bogged down with legalistic and scriptural references. Rather, it is on the relevance and merit of traditional arguments offered for prohibition of interest.

Keywords: Islam, Riba, Interest, Islamic Economics, Islamic Finance, Qaradawi, Islamic Banking

JEL Classification: B19