Banking System

[NobleMuslimUK]

I heard that banking system is an Islamic innovation. A concept taken from the time of the Prophet PBUH's companions. Has anyone got more info regarding this. Of course the muslims or the Sahabas never practised usury or any such thing, usury is a christian innovation to the banking system.

 

[wilberhum]

Many of today’s banking services were first practiced in ancient Lydia, Phoenicia, China, and Greece, where trade and commerce flourished. The temples in Babylonia made loans from their treasuries as early as 2000 bc. The temples of ancient Greece served as safe-deposit vaults for the valuables of worshipers. The Greeks also coined money and developed a system of credit. The Roman Empire had a highly developed banking system, and its bankers accepted deposits of money, made loans, and purchased mortgages. Shortly after the fall of Rome in ad 476, banking declined in Europe.

http://encarta.msn.com/encyclopedia_761575515_4/Banking.html#s32

 

[NobleMuslimUK]

Thats not a sophisticated banking system, thats speaking of a treasury from where people took loans and of course, they must have practised usury.
The basic banking system where people deposit their savings or earning to safely withdraw when they like. Of course the muslims didnt follow the concept of paying or charging interest because thats against Islam. Unlike today all economies rely on interest transactions of one sort or another.

 

[- Qatada -]

:salamext:


Here's some good links bro;


http://www.usc.edu/dept/MSA/economics/

The link above has another link related to the Islamic Banking system.



Here's also a book which may be relevant inshaa Allaah:

Warning Against Riba (Usury) Transactions.doc - By Shaykh Abdul Aziz ibn Abdullah ibn Baz - Translated by Jalal Abualrub [ Download PDF here]
This is a short rebuttal of a research written by Dr. Ibraahim bin Abdullah AnNaasir, in which he tried his best to show the permissibility of most types of Ribaa (usury and interest) transactions that have appeared in recent times in the numerous financial institutions of the world. Hence, we thought English speaking Muslims would benefit from this translated response by Shaikh Abdul-Aziz bin Abdullah bin Baz, one of the noted scholars of our time and a staunch supporter and defender of the Manhaj of the Righteous Predecessors (As-Salaf As-Saalih). Shaikh Ibn Baz's response is a refutation of the misguided effort of Dr. Ibraahim An-Naasir to allow Ribaa transactions.

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http://www.islamicboard.com/798352-post296.html


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[wilberhum]

Thats not a sophisticated banking system, thats speaking of a treasury from where people took loans and of course, they must have practised usury.
The basic banking system where people deposit their savings or earning to safely withdraw when they like. Of course the muslims didnt follow the concept of paying or charging interest because thats against Islam. Unlike today all economies rely on interest transactions of one sort or another.

You can always alter the conditions and modify the definations untill the only answer is the one you want. :hmm:

The first Islamic Banking System was probably created by a Muslim. :hiding: