Muslims and Non-Muslims for an interest-free economy
banking refers to a system of banking or banking activity which is
consistent with Islamic law principles and guided by Islamic economics.
In particular, Islamic law prohibits the collection and payment of
interest , also commonly called riba in the Islamic discourse. For
many Muslims in the Netherlands this interest prohibition in the Koran
is very important. They want neither to receive interest on their
saving money nor contract a loan with interest. Is an interest-free
economy possible in the Netherlands?
STROhalm together with
Bedrijfskundige Moslims are researching and looking into the
possibilities. The co-operation of companies and their customers within
interest-free networks offers a starting-point. In starting an
interest-free network a few points should be paid attention to:
Interest as usury An interest-free economy is central in STROhalm’s ideas. In the Koran there is a prohibition on ‘riba’ or usury: the rich earned much money with money and the poor paid for this.
Purchasing and investing can be done without interest If a business purchases a product, the payment to the supplier goes
through the bank. A bank always charges interest. When large purchases
or investments are involved, this also means high amounts of interest
are to be paid. To
avoid paying those high amounts, businesses settle their mutual
transactions with their own administrative unities and no interest is
charged. The bank no longer acts as an intermediary. More...
Customers play a very important role It is advantageous for customers to become a member of a C3. For the businesses save money because their transactions are interest-free. The transactions are settled in internal units. The money saved this way is used to give regular customers a discount. The customers bring Euro’s into the network through their purchases. Thus the network obtains a capital. This capital forms the basis on which both the companies and the customers can contract an interest-free loan.
Future possibilities Both Muslims and Non-Muslims can join in. In the future interest-free
loans and also mortgages may be possible for both companies and