What is the ruling on an Islamic bank that deals with interest in some of its projects?
The ruling on any bank, whether it is considered Islamic or non-Islamic, depends on its adherence to principles in its transactions, not merely on its name. Some banks that call themselves Islamic may include prohibited dealings or forms of Riba (usury) in their transactions, and this does not change the fact that they are usurious.
The consideration is based on facts, not words, and a Muslim must know the reality of a bank's transactions before passing judgment on it. A distinction should be made between prohibited usurious interest and legitimate profits from (profit-sharing) or Murabaha (cost-plus financing). One should ask people of knowledge about the ruling on a transaction before engaging in it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 36916
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- . 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