 The future of interest-free financing. Chapter 9 in Religion and Finance, 2019, pp 193-215 from Edward Elgar Publishing Abstract: In terms of interest-free financing, Islam is the ‘last man standing’. Judaism continues to engage in interest loans, employing the ‘Deuteronomic double standard’ for lending to Gentiles, and pseudo-interest arrangements for fellow Jews. Christianity has redefined usury as excessive interest, but in line with Benthamite principles does not enforce controls over even excessive interest or usurious practices. Islam is accordingly the focus of this chapter, which revolves around three questions: 1.Why have interest-based financial transactions, such as those in evidence today in conventional finance, proven so seductive and difficult to resist, and how does Islam think the temptations to undertake interest finance can be overcome? 2. What problems have emerged in the application of Islamic financing principles, and what decisions have been taken to resolve these matters, especially in relation to Islamic investment funds, sales-based financing and sukuk? 3. Where is Islamic banking heading; in particular is it moving away from or toward an emphasis on interest? Keywords: Asian Studies; Economics and Finance; Law - Academic (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:14654_9 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Chapters from Edward Elgar Publishing |
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