Islamic scholars debate the best way around the ban on interest amid the oil boom.
Capitalism runs on capital. So, what do you do when your religion forbids loaning money, but your economy is flush with cash due to rising oil prices?
Islamic scholars are debating just how to get around the ban on usury, or lending with interest. And a recent ruling by an Islamic scholar has thrown a wrench in what had become accepted practice. The International Herald Tribune reports,
Islamic banking assets outside Iran totaled $400 billion to $450 billion in 2006 and are projected to rise to $1 trillion by 2010, according to a recent report by McKinsey & Co. Total assets, including those in Iran, totaled $750 billion in 2006, a small fraction of global financial assets, but one that is growing quickly.
Experts say growth has been driven by booming Persian Gulf oil revenue, Muslims' growing preference for an expanding range of Shariah-compliant products and increasing acceptance of Islamic banking practices by financial regulators around the world.
Unfortunately for the industry, "one of the world's leading Shariah finance scholars recently rattled the market by saying 85 percent of Islamic bonds, or sukuk, are not Shariah-compliant. Sheik Mohammed Taqi Usmani argued that, in essence, they were structured too much like conventional bonds."
These bonds are structured in a way that gives the lender a share in future profits, but they also include a promise to pay back the original loan. The promise to repay makes the arrangement similar to a traditional bond, Usmani said.
Christians should pay attention to this debate. While the church has long since become comfortable with loaning money with interest, it can be helpful to see another religious group wrestle with modern capitalism. After all, why was it that for centuries Christians forbade usury and then heavily regulated it?
Hmm, maybe the mess created by the sub-prime mortgage lenders has something to do with it.
Posted by Rob Moll on January 14, 2008 11:31AM
Comments
While the anti-gay equality people quote Leviticus 18:22 with much glee (though it says nothing against being gay or consensual gay sex, and we have a secular government), they seem to forget other "abominations" like Ezekiel 18:13 and other verses on usury. Where are the conservative Christians on issues like "payday" loans and other predatory and dubious lending practices?
While some megachurches have get out of debt ministries, which I very much applaud, that still isn't near enough, as the subprime mortgage debacle is illustrating all too well.
Interest on loans are a fact of modern life, for good and ill, but that doesn't mean that Christians should be "comfortable" with them. Thoughtful yes, realistic yes, careful yes, comfortable no.
Posted by: Gregory Peterson at January 14, 2008
Homosexuality is more than just banned in the OT Levitical Law. And God never provided for gay marriage anywhere so that argument is so foolish it is hard to refute. As to interest it was only wrong to lend on interest within the community of Israel. Israel could do so to other nations. Second of all read the parable of the talents. Jesus talked about putting money in the bank to draw interest. So the previous comment is ridiculous at best and ignorant at worst. Also one must remember that people in Israel did not borrow money for investment purposes. They borrowed money in Israel to survive because of draught or disaster since everyone had land and it was an agriculturally based economy. This prevented the rich from disposessing the poor in need. So the previous comment should read the Bible a bit more closely and stop making ridiculous statements of ignorance.
Posted by: Doug at January 15, 2008
"Homosexuality" isn't banned. It didn't exist, as it's Victorian era theory, and a rather obsolete at that.
And, usury is certainly highly regulated, to say the least. Yet where are conservative Christians on predatory lending practices...off bashing their gay neighbors, I guess.
The beloved clobber verses that are allegedly anti-"homosexual" are about sexual exploitation and perceived idolatrous practices. At least on the temple prostitution front, the world has gotten the message. Now if the religious right would get the message about their sexual exploitation of gays for their hatemongering fund raising.
There was certainly an antipathy towards same-sex sexual activity. but there was considerable antipathy towards many things...like the topic, usury.
Time has exposed that many of those antipathies are not sustainable. at least as absolute proscriptions.
So, how do you deal with them? The radical abolitionists of the 19th Century have pointed the way, but conservative Christians hated them then, and the direction they pointed to: a radical understanding of the Golden Rule.
The clobber verses are simply immoral when used as clobber verses...but they're irresistible, aren't they?
If you are against homosexuality because of the Bible, you are for slavery, now aren't you? Not to mention banning interest on loans.
Posted by: Gregory Peterson at January 15, 2008
"Christians should pay attention to this debate. While the church has long since become comfortable with loaning money with interest, it can be helpful to see another religious group wrestle with modern capitalism."
What does this got to do with going to Heaven or hell. While they wrestle with capitolism, they're on their way to Hell. So what if they solve the problem, they still A BIGGER PROBLEM ---JESUS. I think comparing what Christians should do against what non-believers are doing is a wasted argument. We should be using the Word of God as our standard, not another religion.
Posted by: James at January 16, 2008
Usury is still a sin for many Christians such as Catholics. One should help one's neighbour in need financially for the love of God and expect nothing in return. Capitalism based on usury and Jesus Who calls for the love of neighbour (as one would love himself) are irreconcilable. The next time the feds set interest rates that results in people being unable to keep their homes you have to wonder whether the whole free enterprise system so-called is un-Christian.
Posted by: Ted K. at January 18, 2008
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