Islam's view of Fractional Reserve Banking

Truth_Seekr

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Hi, Assalamualaikum!

I had a question about the way finance works in the modern world, with regard to how money is made.

The money we use is created in the economy through what is called, 'Fractional Reserve Banking' System.
Here's the Wikipedia link ...
https://en.wikipedia.org/wiki/Fractional-reserve_banking

The system is interest-based, which means that it is essentially what's called 'Riba' in Islam. Since this is the case, what is Islam's view on Fractional Reserve Banking? Is it to be considered as 'Riba' and because of this, 'Haram'?


And by the way, please look up on what is 'Fractional Reserve Banking' if you don't understand how it works ...


Sincerely,
- Truth_Seekr

 

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