Sunday, January 30, 2011

History Of Islamic Banking – Part III

Saint Thomas Aquinas, an Italian priest in the 13th century of the Catholic Church asserted that usury was a violation of natural moral law. He stated that putting money out for the generation of more money is an evil unto itself.

Money as defined by Aquinas is consumable goods (Goods that may be depleted or worn out by use). Therefore it is not appropriate to generate more money by lending ot to others. To illustrate the evil of interest, St. Aquinas claimed that usury or riba as a “rent” on the money given out as a loan. It is not fair to charge a rent on the money that has been depleted.

From above, we could see that, the Christians are also prohibited to practice riba'. It was considered as an evil practice since then

Wallahu a'lam

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