Is it permissible to borrow from an Islamic bank if the lending mechanism involves an agreement with a merchant who provides the bank with a price quote for goods, which the bank then pays for to the merchant, and the merchant then gives the full amount to the borrower the following day in exchange for a small fee, knowing that usurious banks offer faster and less expensive deals, but the borrower does not wish to deal with them?

If the bank purchases and takes possession of the goods, then sells them to the customer on a deferred basis for a higher price, and the customer then sells them to another merchant, there is no harm in that. However, it appears that the bank does not take legitimate possession of the goods, which renders the sale impermissible due to the Prophet's (peace be upon him) prohibition of selling goods before taking possession of them. Imam Malik limited the prohibition to food if it was sold, in which case the sale would be void. It also appears that the transaction might be a circumvention of usury, as the merchant's payment of the price the bank paid means that the bank is providing a loan with an increment under the guise of this fictitious transaction.