What is the main reason that bank interest is prohibited for both the depositor and the bank?
Source: FtawySummary from Ftawy's records · added here Oct 24, 2026
Not all banking profits are unlawful (). The profits from Islamic banks are lawful () because they fluctuate with profit and loss (), and this is a form of trade that Allah has permitted. As for the profits from interest-based (ribaawi) banks, they are unlawful (haram) because they are fixed and do not change. This is a form of usury (riba) that Allah has forbidden, in accordance with His saying, the Almighty: "But Allah has permitted trade and forbidden interest."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/37296
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- Ftawy
- Original fatwa ID
- 37296
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy