Comparative Financial Systems in Judaism, Christianity and Islam: The Case of Interest
In today’s discussions the prohibition of interest, based in Shari’a law, is seen as solely an Islamic finance phenomenon and often advocated as a new way of providing financial services. It is important to recognise that the principles underpinning Shari’a are largely similar to those preached and practised by Judaism and Christianity as well as other religions. Both Judaism and Christianity have, for example, banned the receipt and payment of interest for a significant period of time, albeit that each had a slightly different interpretation on the permissibility of lending at interest. Although there is evidence about the existence of prohibitions on interest in other religions such as, for example, Buddhism, the focus of this paper is on the prohibition of interest in the three religions that are generally referred to as the Abrahamic or monotheistic faiths; Judaism, Christianity and Islam, the way in which the prohibitions entered into law and the impact on the availability of financial transactions that were executed despite the restrictions. The paper provides an insight into the way in which opinions regarding the permissibility of interest has changed over time.
Islamic Finance, Consumer Protection and Public Policy
Islamic finance in its broadest sense has existed since the early years of Islam. While Islamic finance has much to offer with regard to financial management and ethical investing, it lacks cohesive and overarching regulatory structures. This chapter addresses these concerns by focusing on two central themes: (1) the importance of faith or religion for some people when it comes to financial decisions, and (2) the potential consumer protection concerns with respect to regulating what is or what is not “Islamic” in western financial markets. The chapter argues that Islamic finance, has much to offer to global finance, but its current practice falls far short of Islamic economic and ethical ideals.
The Origin of Banking in Mediaeval Islam: A contribution to the economic history of the Jews of Baghdad in the tenth century
The last few decades have seen the publication of several hitherto unedited Arab sources relative to the history of the 'Abbāsid empire in the tenth century—such as Kitāb ta'rīkh al-wuzarā' by Hilāl aṣ-Ṣābi, the volumes of Miskawaihi's Kitāb tajārib al-umam, and at-Tanūkhī's Nishwār al-muḥāḍarā—that are a veritable storehouse of information on the social, economic, and political situation of that period. These works have revealed a completely new world to us: they show us, so to speak, the back stage of tenth century 'Abbāsid administration and we see the governmental machinery with all its ramifications in action.