Is it permissible for shareholders in an interest-based bank to take their capital from the interest-based profits and leave the remainder for the bank, while their shares continue to generate profits?
Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 2026
Contributing to interest-based (riba-based) banks is forbidden (haram). Whoever knows that this is forbidden has committed a great sin and must repent. However, whoever did not know and was not negligent bears no sin. In all cases, the partnership must be dissolved if possible. If that is not feasible, then the profits exceeding the principal capital should be spent on charitable causes and for the benefit of Muslims until the partnership is dissolved. If withdrawing is not possible, then it is permissible to sell the shares, take the principal capital, and donate the surplus.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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