So I learned today from my Muslim mate that Muslims don’t believe in earning or paying interest on money. Basically banks charging interest on loans and credit cards is sinful. Conversely, earning interest on your long term deposit account is also sinful. Maybe sinful is too strong a term, but it was a brief conversation and I didn’t quite understand the whole gist of it but it I found it very interesting considering the dismal economic state of many western countries.
I wonder if we would refer to it as simony?
'Islamic banking refers to a system of banking or banking activity that is consistent with the principles of the Shari’ah (Islamic rulings) and its practical application through the development of Islamic economics. The principles which emphasise moral and ethical values in all dealings have wide universal appeal.
Shari’ah prohibits the payment or acceptance of interest charges (riba) for the lending and accepting of money, as well as carrying out trade and other activities that provide goods or services considered contrary to its principles. While these principles were used as the basis for a flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to provide an alternative basis to Muslims although Islamic banking is not restricted to Muslims.’