What is the legitimacy of the Islamic bank and the ruling on dealing with it?

The questioner : The questioner asks about the legitimacy of the Islamic bank and dealing with it.

The Shaykh : The Islamic bank, as far as we know, has no difference today between what is called Islamic banks and British or American banks. This is because what they call by a name other than interest, which is riba itself, is a reality even in Islamic banks. I think you all know that if one of you wants to buy a need through this bank whose sign says "Islamic Bank," they impose on you a profit they call, for example, murabahah, ten percent for six months, with installments over six months. If you tell them, "I cannot pay in six months, but in a year," the riba called by a name other than murabahah increases. They ask for an increase of half or double; if it was ten percent, it becomes fifteen or twenty percent. What is riba but this? In addition to this, this transaction is a transaction of a disbeliever with his disbeliever brother, not a transaction of a Muslim with his Muslim brother. Why?
It is the nature of Muslims that one of them helps his brother and is a support for him, as you know from the hadith of the Messenger (peace be upon him) Today, this help has become forgotten. You will not find a Muslim helping his Muslim brother except in exchange for what they call riba, or rather, what the Shari'ah calls riba. They call it interest, and I warn our brothers present to remove the word "interest" from their vocabulary and to repeat from the vocabulary of their Lord the word "riba." Because the forbidden riba today, by the consensus of Muslims, is called interest. Why do they call it interest? So that ... the weight of this sin falls on the hearts of the believers. This method of changing words to other words is from the scheme of Satan against his enemy, man. For example, you know that the forbidden dancing in Islam is called fine arts, and the forbidden drawing in Islam is also called so. Even the forbidden khamr, by the consensus of Muslims, is called alcoholic beverages. All these names are from the inspiration of Satan to remove the awe of the Shari'ah words from the hearts of those afflicted with those sins.
When riba is mentioned in an Islamic context, it has a grandeur in the hearts of Muslims and has its bad effect on their hearts. So if this Qur'anic word is removed and the word "interest" is placed as its substitute, this sin, which is riba, becomes light in the hearts of Muslims. Likewise, the other group we gave an example of earlier: khamr is called, or araq, alcoholic beverages, meaning it refreshes the spirit. I seek refuge in Allah. Therefore, if Allah the Exalted has spared you from dealing in riba, thank Allah for that, and add to that that you do not use the word of the usurers, which is "interest." Use the word of the Lord of the Worlds, which is "riba." So we do not want to fall into what the Jews fell into, who used to name things by names other than their true names. He (peace and blessings be upon him) said: What did the Jews do? Allah the Exalted said in the Noble Qur'an: Among them were the fats and the intestines. So the Jewish butcher would slaughter the fat, fleshy, well-fed sheep or ram. His law, as a fitting recompense, ordered him to throw the fat on the ground and benefit from the red meat. The Jews, and you know the material greed of the Jews, for which they sell their honor and their religion, if they have a religion!
They did not have patience with the ruling of the Lord of the Worlds when He forbade them the fats. They were patient for a period, then they devised a trick. They took the fats and put them in large pots and lit a fire underneath them. They took the form of water, a flat shape. It melted. So Satan inspired them that this is not that fat which Allah forbade, because this has taken another form. He (peace and blessings be upon him) said: meaning melt them The point is that changing the shape for the sake of eating is from the tricks of the Jews. So when we call riba interest and call riba murabahah, and when the transaction reveals that it is riba itself, as evidenced by the fact that if you borrow from any bank you wish one hundred, you must pay one hundred and five, or more or less. If you borrow two hundred, it doubles, and so on. So when you want to buy anything, a car, a factory, a profession, whatever that is, an electric oven, etc., they will tell you for a period of ... six months, they will tell you ten percent profit, ten percent. For a period of one year, they will tell you fifteen or twenty percent, more, more. This is riba itself, but they call it by a name other than its name.
He (peace and blessings be upon him) said in the authentic hadith: What is the name of khamr today? Very nice: wine, whiskey, whatever that is. We never hear it, and among their names there is one that prevails, for example, champagne, because it is heavy and not used. The name is heavy in name and in reality. So with these soft names, they lure customers to it, inspired by Satan and his soldiers. The Prophet (peace and blessings be upon him) predicted this reality by the inspiration of Allah, by way of example: I said this by way of example, otherwise there are many, many things, among them Islamic banks, the Islamic bank, and Islamic socialism. Have you heard of Islamic socialism? And soon you will hear of Islamic democracy. And we feared that we would hear of Islamic communism, but Allah the Exalted decreed its end. Indeed, we feared it, because socialism is the ladder to communism. As long as there is among the Muslims, and among the callers of the Muslims, and among the writers and authors of the Muslims, one who writes about Islamic socialism, then by Allah, we feared that a person would come and write for us a book called Islamic communism. But praise be to Allah, it was decreed to end and its fitnah ceased. But we still hear new names for it that imply old evils. And these examples I mentioned are sufficient for you.