Interjection by Abu Malik Ibrahim Shuqqa, and his remarks regarding Islamic banks, they claim!!
Machine translationRead the Arabic original
Abu Malik: ... also, O our Shaykh, the affliction in this matter.
The Shaykh: Yes.
Abu Malik: The existence of these banks or financial institutions that are named with Islamic names.
The Shaykh: Yes.
Abu Malik: And naturally, people turned to them in great numbers, and some began advising others to deposit their money in these banks because they do not deal in riba (usury or interest). I am clarifying this specific issue; very recently, someone mentioned to me that I was not actually aware of this matter, meaning I was not... and I did not have clear evidence of it. I used to say that what is called murabahah (a cost-plus sale) is a matter that is still ambiguous for the people, or is a matter of going back and forth. Knowing that I had advised them and spoken with them about this topic, if the matter proceeds as follows: If you want to buy, for example, some materials like cement or iron, or anything, and then I say: I want to buy for four or five thousand dinars; directly, the bank accountant tells you: this amount, which is five thousand dinars, will become seven thousand dinars after so many years, and the installment payments will be based on that; based on adding this amount to the amount you will take as the price for these things. Naturally, what they call a loan, incidentally, they do not call it bank interest... he says: this is halal (lawful) profit!
The Shaykh: They call it by a name other than its true name!
Abu Malik: Yes, indeed. So first, the amount that is added to the principal borrowed amount is determined in advance, before it goes to the market and buys what it wants and informs the bank that it wants, absolutely. This matter must be known by the brothers. I truly did not know it in this manner.
Yes?
The Shaykh : ... .
Abu Malik: Yes, that is right.
The questioner: Okay; O Shaykh, may Allah reward you with good, the second part of the question.
The Shaykh: Yes.
Abu Malik: The existence of these banks or financial institutions that are named with Islamic names.
The Shaykh: Yes.
Abu Malik: And naturally, people turned to them in great numbers, and some began advising others to deposit their money in these banks because they do not deal in riba (usury or interest). I am clarifying this specific issue; very recently, someone mentioned to me that I was not actually aware of this matter, meaning I was not... and I did not have clear evidence of it. I used to say that what is called murabahah (a cost-plus sale) is a matter that is still ambiguous for the people, or is a matter of going back and forth. Knowing that I had advised them and spoken with them about this topic, if the matter proceeds as follows: If you want to buy, for example, some materials like cement or iron, or anything, and then I say: I want to buy for four or five thousand dinars; directly, the bank accountant tells you: this amount, which is five thousand dinars, will become seven thousand dinars after so many years, and the installment payments will be based on that; based on adding this amount to the amount you will take as the price for these things. Naturally, what they call a loan, incidentally, they do not call it bank interest... he says: this is halal (lawful) profit!
The Shaykh: They call it by a name other than its true name!
Abu Malik: Yes, indeed. So first, the amount that is added to the principal borrowed amount is determined in advance, before it goes to the market and buys what it wants and informs the bank that it wants, absolutely. This matter must be known by the brothers. I truly did not know it in this manner.
Yes?
The Shaykh : ... .
Abu Malik: Yes, that is right.
The questioner: Okay; O Shaykh, may Allah reward you with good, the second part of the question.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.