Is it permissible to benefit from the funds of usurious banks, and what is the response to Al-Azhar's fatwa permitting bank interest?

The answer is summarized in a previous fatwa by the Grand Imam of Al-Azhar himself (No. 41/224, dated Rajab 14, 1409 AH, corresponding to February 20, 1989), which stipulated that depositing or lending money, or borrowing money with a pre-determined interest, is considered an interest-bearing loan. Every loan with a pre-determined interest is forbidden (haram), and these interests fall under the category of riba al-ziyada (usury of increase) which is forbidden by Islamic law.