Salam my question I want to ask is in an Islamic State do Banks exist who owns the Banks or are Banks haram ? If a person wants a loan for a purpose do they get the loan from the State from the Bayt al-mal ? As far as a Economy how would Business loans work in an Islamic State ? Plase see this links below thank you.
Bayt al-mal is an
Arabic term that is translated as "House of money" or "House of Wealth." Historically, it was a
financial institution responsible for the administration of
taxes in
Islamic states, particularly in the early Islamic
Caliphate. It served as a
royal treasury for the
caliphs and
sultans, managing personal finances and government expenditures. Further, it administered distributions of
zakah revenues for public works. Modern Islamic
economists deem the institutional framework appropriate for contemporary Islamic societies.
http://en.wikipedia.org/wiki/Bayt_al-mal
`Umar (may Allah have mercy on him) ordered the viceroy to launch a process of agricultural credit from the Bayt al-Mal, which served as a state-owned bank that provided loans to farmers whenever they were afflicted with distress. He said to his viceroy: 'Whoever is unable to pay the Jizyah for his land, give him a loan to be able to cultivate his land. We don't need them for a year or two."
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http://islamstory.com/en/node/27459
Why Banks are not Islamic
Uploaded by
anjemchoudary on May 2, 2010
A brief clarification regarding the prohibition of Banks in Islam.
http://www.youtube.com/watch?v=iprpUBlUyVA