Loans with Interest in Early Christianity and Islam Essay

1075 Words5 Pages
Rami Ibrahim
BADM 4370 – History of Business
Instructor: Michael Morrone
Individual Assignment
Loans with Interest in Early Christianity and Islam
February 7, 2012 When an individual thinks of religion, the first thing that comes to a believer’s mind is the nonnegotiable worship of a supreme being(s) as a source of tranquility whenever he/she is in distress. On the other hand, to a pro-secularization individual, religion only causes pricey conflicts between different cultures and is considered an outdated practice which should not have a place in today’s society. What people in general tend to forget about religion is that it their respective figures like Prophet Muhammad and Jesus wanted to promote a way of life that
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Similarly the selling of barley for barley is Riba except if it is from hand to hand and equal in amount, and dates for dates is usury except if it is from hand to hand and equal in amount.” (Umar). From an economical perspective, what the Prophet of Islam is referring to here is the idea that only the actual value of dates should exist in any trade transaction. For example, a bank giving out a loan for 100,000 dollars with an interest of 10% means that the 10,000 interest to be paid does not actually exist in the economy and hence to the prophet this is considered riba because the bank is gaining money out of nowhere. In the Sharia, the modern day solution to this banking issue is Islamic banking which offers; “..more just and equitable distribution of resources; more responsible and profitable lending due to the necessarily closer bank-client relationship; less volatile business cycles; and more stable banking systems.” (Evans, 1987) Similarly, early Christianity has the same general view of usury, “In thee have they taken gifts to shed blood; thou hast taken usury and increase, and thou hast greedily gained of thy neighbours by extortion, and hast forgotten me, saith the Lord God.” (Exekiel 22:12). However, Islam tends to be stricter about preserving authenticity of teachings of Allah or Prophet Muhammad because the teachings were meant to be implemented
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