Abstract
This paper contributes to Islamic studies literature by exploring why many Islamic scholars believe that Islam bans conventional lending and mandates Islamic finance, and how the scriptural injunction against ribā is redefined when we consider the features of modern economic systems. The article advocates the view that ribā and charity are inextricably linked and must therefore be considered together. The latter emphasizes helping the poor and the former prevents exploiting them. Islamic finance, however, has been incepted by juxtaposing trade with lending. The study also discusses the fallacies raised by many Islamic scholars against conventional lending. This manuscript demonstrates the necessity of modernizing our religious understanding to accelerate poverty reduction in the Muslim world.
| Original language | English |
|---|---|
| Pages (from-to) | 460-482 |
| Number of pages | 23 |
| Journal | Journal of the American Academy of Religion |
| Volume | 87 |
| Issue number | 2 |
| Early online date | 19 May 2019 |
| DOIs | |
| Publication status | Published - Jun 2019 |
Keywords
- Islamic finance
- Economics of religion
- Riba
Access to Document
- Lending_the_Poor_and_Islamic_Scripture_AM
Copyright © 2019, Oxford University Press. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1093/jaarel/lfz017
