Question

Islamic banking in practice

179

Question

Do Islamic banks really abide by Islam, or is 'Islamic banking' just a scheme to circumvent the Shariah? Is it Halal to work for such banks?

Related Fatwa

Taking Personal Loan from Islamic Banks in Qatar

Obligation to pay accumulated bank fees

Bank is entitled to refuse investments of those whose income is doubtful

An Islamic bank offering a fixed profit rate

Dealing with a bank whose shareholders' money is not lawful

Islamic finance companies asking for securities from their clients

Cooperation for establishing Islamic banks

Accepted Answer

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

Islamic banks are those which enforce the rulings of Islamic Shariah in all their transactions. Thus every bank that applies the rulings of Shariah is considered as Islamic bank. It could be known by the existence of an authentic, reliable and religious jurist committee that supervises all the bank’s transactions.

Any bank that functions under the above committee is Islamic and hence it is permitted to deal with it. Any bank that lacks the above condition is not Islamic, despite its claim of being an Islamic bank.

Allah knows best.

Fatwa

Islamic banking in practice

Question

Answer

Related Fatwa

Taking Personal Loan from Islamic Banks in Qatar

Obligation to pay accumulated bank fees

Bank is entitled to refuse investments of those whose income is doubtful

An Islamic bank offering a fixed profit rate

Dealing with a bank whose shareholders' money is not lawful

Islamic finance companies asking for securities from their clients

Cooperation for establishing Islamic banks

Search Fatwa

Fatwa Subject

Categories

Multimedia

Special Folders

Services