Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia
At least seven verses in the Qur’an and many hadiths highlight that riba (usury) is forbidden in Islam and should be avoided by Muslims. However, when we bring this issue into the modern context, especially its application in economics and banking, Muslims might say differently. Some Muslims with co...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
SAGE Publishing
2022-05-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440221097931 |
| _version_ | 1818244979470893056 |
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| author | Burhanudin Harahap Tastaftiyan Risfandy |
| author_facet | Burhanudin Harahap Tastaftiyan Risfandy |
| author_sort | Burhanudin Harahap |
| collection | DOAJ |
| description | At least seven verses in the Qur’an and many hadiths highlight that riba (usury) is forbidden in Islam and should be avoided by Muslims. However, when we bring this issue into the modern context, especially its application in economics and banking, Muslims might say differently. Some Muslims with contemporary arguments could say that banks’ interest is not similar to riba because riba is only in the context of excessive lending and taking advantage of others’ needy. We survey 626 people in Indonesia and finds that 93% of Muslims said that riba is indeed prohibited in Islam, but some of them disagree if riba is similar to the conventional bank’s lending-borrowing mechanisms. In this article, we also empirically find that their involvement in the Islamic organization could strengthen their perception that riba is not similar to the bank’s interest rate. |
| first_indexed | 2024-12-12T14:25:37Z |
| format | Article |
| id | doaj.art-8df808926e184759a74805e7ca02e4fa |
| institution | Directory Open Access Journal |
| issn | 2158-2440 |
| language | English |
| last_indexed | 2024-12-12T14:25:37Z |
| publishDate | 2022-05-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj.art-8df808926e184759a74805e7ca02e4fa2022-12-22T00:21:41ZengSAGE PublishingSAGE Open2158-24402022-05-011210.1177/21582440221097931Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From IndonesiaBurhanudin Harahap0Tastaftiyan Risfandy1Faculty of Law, Universitas Sebelas Maret, Surakarta, IndonesiaFaculty of Economics and Business & Center for Fintech and Banking, Universitas Sebelas Maret, Surakarta, IndonesiaAt least seven verses in the Qur’an and many hadiths highlight that riba (usury) is forbidden in Islam and should be avoided by Muslims. However, when we bring this issue into the modern context, especially its application in economics and banking, Muslims might say differently. Some Muslims with contemporary arguments could say that banks’ interest is not similar to riba because riba is only in the context of excessive lending and taking advantage of others’ needy. We survey 626 people in Indonesia and finds that 93% of Muslims said that riba is indeed prohibited in Islam, but some of them disagree if riba is similar to the conventional bank’s lending-borrowing mechanisms. In this article, we also empirically find that their involvement in the Islamic organization could strengthen their perception that riba is not similar to the bank’s interest rate.https://doi.org/10.1177/21582440221097931 |
| spellingShingle | Burhanudin Harahap Tastaftiyan Risfandy Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia SAGE Open |
| title | Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia |
| title_full | Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia |
| title_fullStr | Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia |
| title_full_unstemmed | Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia |
| title_short | Islamic Organization and the Perception of (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia |
| title_sort | islamic organization and the perception of usury and conventional banks among muslims evidence from indonesia |
| url | https://doi.org/10.1177/21582440221097931 |
| work_keys_str_mv | AT burhanudinharahap islamicorganizationandtheperceptionofusuryandconventionalbanksamongmuslimsevidencefromindonesia AT tastaftiyanrisfandy islamicorganizationandtheperceptionofusuryandconventionalbanksamongmuslimsevidencefromindonesia |