The Concept of Riba in Islamic Banking Law: An Introduction

Journal of International Banking Law & Regulation, Vol. 26, Issue 10, pp. 405-411, 2011

9 Pages Posted: 6 Oct 2011 Last revised: 20 Dec 2012

See all articles by Chetan Phull

Chetan Phull

Smartblock Law Professional Corporation

Date Written: October 4, 2011

Abstract

This article provides a short overview of "riba", the principal feature of Islamic banking law. Riba refers to certain prohibitions against charging and paying interest on loans and prohibitions against certain other transactions to protect debtors. Sources of Islamic law are reviewed to explain the concept of riba, and rationales for the proscriptions against riba are surveyed. Modern investment principles and loans based in sharia law are also briefly discussed.

Keywords: Banking; Financial instruments; Interest; Islamic finance; Islamic law; Sharia

JEL Classification: E43, E49, E51, E59, F30, F34, F39, G29, K12, K19, K29, K39

Suggested Citation

Phull, Chetan, The Concept of Riba in Islamic Banking Law: An Introduction (October 4, 2011). Journal of International Banking Law & Regulation, Vol. 26, Issue 10, pp. 405-411, 2011. Available at SSRN: https://ssrn.com/abstract=1938373

Chetan Phull (Contact Author)

Smartblock Law Professional Corporation ( email )

180 John Street
Toronto, Ontario M5T 1X5
Canada

HOME PAGE: http://smartblocklaw.com

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