The Ruling on the Transactions of Islamic Banks
Machine translationRead the Arabic original
The questioner:
Yes. May Allah multiply your reward and appreciate your efforts. A questioner says: We ask Your Eminence to provide information regarding the transactions of Islamic banks, which do not set a fixed interest rate, but calculate a return at the end of every three months, and the rate of return changes according to the profits.
The Shaykh:
Islamic banks are to operate according to Islamic directives, Islamic profits, and Islamic contracts. If you see a transaction that contradicts the Shari'ah, do not approve of it. Islamic banks are those that operate according to what Allah has prescribed, such as murabahah (cost-plus sale) and partnerships with people.
If they accumulate their profits every six months, or every six, or every three months, and distribute them, that is good and fine. However, the transaction must be conducted in the Islamic manner, with known profits, or with a shared portion in a mudarabah (profit-sharing partnership). This is the obligatory duty of every Islamic bank that follows Islamic transactions and stays away from what Allah has forbidden.
If a person sees in a bank that claims to be Islamic something that contradicts this, let him beware of riba (usury or interest) and let him beware of forbidden transactions. Yes.
Yes. May Allah multiply your reward and appreciate your efforts. A questioner says: We ask Your Eminence to provide information regarding the transactions of Islamic banks, which do not set a fixed interest rate, but calculate a return at the end of every three months, and the rate of return changes according to the profits.
The Shaykh:
Islamic banks are to operate according to Islamic directives, Islamic profits, and Islamic contracts. If you see a transaction that contradicts the Shari'ah, do not approve of it. Islamic banks are those that operate according to what Allah has prescribed, such as murabahah (cost-plus sale) and partnerships with people.
If they accumulate their profits every six months, or every six, or every three months, and distribute them, that is good and fine. However, the transaction must be conducted in the Islamic manner, with known profits, or with a shared portion in a mudarabah (profit-sharing partnership). This is the obligatory duty of every Islamic bank that follows Islamic transactions and stays away from what Allah has forbidden.
If a person sees in a bank that claims to be Islamic something that contradicts this, let him beware of riba (usury or interest) and let him beware of forbidden transactions. Yes.
Source
قناة «فضيلة الشيخ ابن باز Alsheikh Binbaz»، 420 توضيحكم بخصوص معاملات البنوك الإسلامية والتي لا تحدد نسبة فائدة ولكن يحتسب عائد في نهاية كل... — youtube.com
The Arabic text is a machine transcription of the audio recording.