Continuation
The
author writes:
Islam
recognizes the role capital plays in production.
Although
the Quran forbids the creation of money by money.
At
the same time, it does allow money to be used:
-
for trading tangible assets;
-
and for conducting business which may
generate profits.
Loans
are permitted:
-
if the interest is linked to the profit or
loss obtained from the investment
-
and if the predetermined rate is replaced
with a profit commensurate with the result of a real economic activity.
For
Islam, it is “profit” rather than “interest”.
That
is closer to its sense of ethics and fairness.
From the research
paper of European Central Bank
(Authors:
F.Mauro, P.Caristi, S.Couderc, A.D.Maria,
L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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