Q. A Muslim in Canada works in a bank where his job involves providing capital for clients to ensure that they can carry out their projects. All such deals involve interest. Is such work permissible? If not, does it mean that working in a bank or a financial institution is forbidden?
Mazhar Khan
A. Much of the work banks do is interest-based, especially in the West where interest is accepted as an essential element of national economy. Hence, the rate of interest is normally fixed by the central bank that takes into consideration several factors.
A number of scholars are of the view that interest cannot be equated with usury, not in all cases at any rate. They point out differences and some of their arguments are sound and valid.
However, the majority of scholars continue to consider interest as another version of usury. Hence they consider any dealing that is based on interest to be forbidden in Islam.
The prohibition of usury is one of the strictest in Islam. The Prophet says: “God curses the person who devours usury, the one who pays it, the clerk who writes the contract between them and the two witnesses to that contract.”
In the Qur’an God gives a stern warning that any community that does not stop usury shall be at war with God and His messenger. There can be nothing more fearsome. Therefore, it is far better that one should not be involved with usury in any capacity.
When a person works for a bank, he should try to work in such areas that do not involve interest.
If he cannot do so, then he should try to find a job outside banking. He does not need to quit his job before finding a new one. In fact he should stay, but he should be seriously looking for a new job.