This article argues that much of Scholastic and neo-Scholastic teaching on usury rests on practical considerations regarding redistribution and market instability. This aspect of usury is underappreciated by economists, especially those in the field of the history of economic thought. A core...

The constitution of Pakistan has disowned the interest-based transactions because of the conceptual foundation of Riba-prohibition as per the tenets of Quran and Sunnah. Since the Objectives Resolution in 1949, people of Pakistan have denied any transaction that keeps them on war against Allah...

The major objective of this study is to amplify the advantages of fostering interest-free microfinance (IFM) institutions in Ethiopia. Their economic, social, legal, technological and other upper hands over the other institutions are assessed. Some country-cases are presented, and an analysis is...

Modern Muslim scholars prohibit riba or interest, but they prohibit it on the basis of wrong reasoning or interpretation of the texts. Their faulty reasoning has led to confusion and difficulties in the implementation of Islamic banking and finance. This paper points our that these scholars...

Islamic finance has witnessed a phenomenal growth during the past couple of decades. However, this remarkable growth has also been accompanied by some challenges and dilemmas. Islamic finance today is at the crossroads where resolving these issues is a prerequisite for its future sustained...

I summarize the key points of the scholastic theory of usury following The Scholastic Analysis of Usury by John T. Noonan. Usury is the sin of taking interest on a loan without a just title. According to Scholastic moral theology, interest on loans may be justified by the extrinsic titles to...