WHAT IS BANKING!

LET’S UNDERSTAND BANKING


Many apologists of Islam feel much perplexed when they are asked how Islamic system can work in a modern society when it prohibits banking business. These apologists run mad with their excessive enthusiasm and have go so far as to say that Islam is not against the present type of banking system and they sometimes go even so far as to assert that interest is allowed (by keeping and originating other names for ribah). We believe that their defence of the banking system is due to their ignorance or lack of knowledge of this system.


Lest we may be accused of bias in condemning it, we shall describe the money lending process by a very gifted Western writer, Jeffery Mark stated in his book The Modern Idolatry.


To understand the past and present history of banking practice, it is necessary to go back several hundred years and consider the transition of the medieval goldsmiths into money-lenders, the close and indeed exact relation of whose activities to modern banking methods is so ingenuously misrepresented in all the standard text books on the subject.