(An American
Economic Association Publication)
Interest,
usury, riba, and the operational costs of a bank
by
A.L.M. Abdul Gafoor
Clarifies the definition of riba, and
provides a comprehensive scheme for meeting the financial needs of Muslims.
Presents historical perspectives on the use and consequences of riba. Explores
the history of interest, its relation to usury and riba, the origins of
dogmas and theories that prohibit or justify its practice, and the meaning of
interest in the modem setting of banking. Presents a general model of interest
in which several scenarios — from person-to-person lending to modem
commercial bank lending — become submodels.
Separates riba from the operational costs of a bank, allowing for the
design of a riba-free system of commercial banking that is both viable
and compatible with the conventional one. Classifies the financial needs of
people by purpose and circumstance and suggests appropriate methods and
institutions for dealing with these needs without involving riba.
Bibliography; index.
Groningen: Apptec
Publications, ISBN 90-802354-8-2,pbk; viii+68 pages, 2004.
$12.00, paperback; $24.00, hard
cover.