The Ruling on Dealing with Islamic Banks

A message also reached the program from one of the female listeners, saying: (M. H. R). Our sister says: We hear about Islamic banks. Are they like the banks that exist now, or do they differ from them in some way? And what is the ruling on dealing with those banks?
Answer: Islamic banks avoid usurious transactions, so dealing with them is not like dealing with usurious banks. There is no blame in dealing with Islamic banks, and there is blame in dealing with usurious banks in any transaction that involves riba (usury or interest). As for transactions that do not involve riba, such as money transfers without riba, and the like, there is nothing wrong with them. But usurious transactions with any person, whether with a usurious bank or with someone else, are not permissible. This is like: depositing funds with a profit of five percent, ten percent, borrowing with a profit of five percent, ten percent, more or less. This and the like is riba, whether that is with a usurious bank or an Islamic bank, or with a merchant, or with anyone else.
As for Islamic banks that rely on the law of Allah, dealing with them is good and helps them in their progress on this path. Cooperating with usurious banks through riba is a matter that is not permissible. Likewise, with non-banks, such as merchants and individuals, it is not permissible to cooperate through riba with anyone, ever.
As for Islamic banks, it is obligatory to encourage them and care for them. It is obligatory for those in charge of them to be wary of everything related to riba, and to be truthful in what they attribute to their banks, namely that they are Islamic, and to be wary of being lenient in that matter. Yes.
The presenter: May Allah reward you.
Your Eminence! People raise the point that these banks also cannot do without dealing with those usurious banks?
The Shaykh: As for what we have come to know, what has appeared from them is that they are hesitant about that and they stay away from riba. As for what is hidden, Allah (Mighty and Majestic) is the One who knows, (Glorified and Exalted is He). But Islamic banks have enemies and opponents who do not believe in them. So it is obligatory to encourage them and care for them, and it is obligatory for those in charge of them to stay away from every doubtful matter, so that their opponents do not find a way to criticize their work.
The presenter: May Allah reward you. But if their dealing with other banks, Your Eminence, is in matters other than riba, such as money transfers and the like...?
The Shaykh: There is nothing wrong with that, there is no blame in that, praise be to Allah. Yes.
The presenter: Your Eminence! You have been kind enough to raise the issue of borrowing from banks and the interest on it. Is there a difference between borrowing for investment and borrowing for consumption?
Answer: There is no difference in that. If one borrows for investment or for consumption on the basis of riba, he has committed riba. Whether that loan is to be invested in other businesses, or is for his need, it is all riba, it is all forbidden. Yes.
The presenter: May Allah reward you.