Bank Interest in the Contemporary Era: Problem of Ad'afan Muda'afah Interpretation in Determining Law of Usury
DOI:
https://doi.org/10.32332/milrev.v3i1.8948Keywords:
Ad'afan Muda'afah, Bank Interest, Contemporary Era, Persecution, Riba.Abstract
Usury in Islam is a prohibited system in the Qur'an and hadith. The system is not recognized in the modern banking system, leading to different opinions among Muslims in determining the legality of bank interest. Therefore, this research aimed to explore the contemporary law of bank interest, focusing on the different opinions among the mufasir on the definition of Ad'afan Muda'afah as a basis for determining the legality of usury. A normative method was adopted, and a literature review of several scholars was conducted on usury law and the interpretation of Ad'afan Muda'afah. The data was analyzed considering the modern banking system within the framework of Islamic law, particularly Maqashid Shari'ah. The results showed that the difference in the illat used for bank interest law varied in legal conclusions. Despite efforts to forbid bank interest, Muslims did not attain a definite solution to avoid this issue. Consequently, bank interest was temporarily sanctioned under certain conditions such as not being compounded, having low interest, and not comprising any form of persecution. To address this problem, Muslims should support the existence of Islamic bank producing muamalah products according to Islamic Sharia.
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References
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Al-Agha, Samah. “Money Laundering from Islamic Perspective.” Journal of Money Laundering Control 10, no. 4 (October 23, 2007): 406–11. https://doi.org/10.1108/13685200710830899.
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Jazîrî, Abd al-Rahmân al-. Kitâb Al-Fiqh ‘Alâ al-Mazâhib al-Arba’Ah. Vol. 2. Beirut: Dâr al-Kutub al-‘Ilmiyyah, 1990.
Jurjani, Ali bin Muhammad al-. Kitab Al-Ta’rifat. Beirut: Dar al-Kutub al-‘Ilmiyyah, n.d.
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Khan, Muhammad Akram. What Is Wrong with Islamic Economics?: Analysing the Present State and Future Agenda. Edward Elgar Publishing, 2013. https://doi.org/10.4337/9781782544159.
Kuran, Timur. The Long Divergence: How Islamic Law Held Back the Middle East. New York: Princeton University Press, 2011. https://press.princeton.edu/books/hardcover/9780691147567/the-long-divergence.
Maksum, Muhammad. “The Mechanism of Avoiding Riba in Islamic Financial Institutions: Experiences of Indonesia and Malaysia.” JURIS (Jurnal Ilmiah Syariah) 22, no. 2 (December 15, 2023): 235. https://doi.org/10.31958/juris.v22i2.6952.
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Mansoor Khan, Mohammad, and M. Ishaq Bhatti. “Why Interest‐free Banking and Finance Movement Failed in Pakistan.” Humanomics 22, no. 3 (July 1, 2006): 145–61. https://doi.org/10.1108/08288660610703320.
Mas’adi, Ghufton A. Fiqh Muamalah Kontekstual. Jakarta: PT. Raja Grafindo Persada, 2002.
Masvood, Yaaseen, and Y. Lokeswara Choudary. “Islamic Banking-A Cross Cultural Patronage Study among the Students in Chennai.” Asian Social Science 11, no. 4 (January 14, 2015): p310. https://doi.org/10.5539/ass.v11n4p310.
Mushlihin, Imam Anas. “The Thought of Ahmad Hassan About Riba.” Realita 1, no. 1 (n.d.): 2004.
Muslehuddin. Bankin and Islamic Law, Terj. Aswin Simamora, "Sistem Perbankan Islam. Jakarta: Rineka Cipta, 1990.
Omar Farooq, Mohammad. “Exploitation, Profit and the Riba ‐interest Reductionism.” International Journal of Islamic and Middle Eastern Finance and Management 5, no. 4 (November 23, 2012): 292–320. https://doi.org/10.1108/17538391211282818.
Patinkin, D. Studies in Monetary Economics. New York: Harper and Row, 1972.
Rafiq, Ainur. Mazhab Jogja: Menggagas Paradigma Ushul Fiqh Kontemporer. Yogyakarta: Ar-Ruzz Media, 2002.
Rahman, Fazalur. Doktrin Ekonomi Islam. Vol. 3. Yogyakarta: PT Dana Bhakti Prima Yasa, 1995.
Rahman, Fazlur. Riba and Interest’. Islamabad: Islamic Studies, 1964.
Razi, Iman Fahruddin al-. Al-Tafsir al-Kabir Aw Mafatih al-Ghaib. Beirut: Dar al-Kutub al- ‘Ilmiyyah, n.d.
Ridha, Muhammad Rasyid. Tafsir Al-Qur’an al-Hakim. Vol. 4. Mesir: Dar al-Manarah, 1957.
Roover, Raymond De. “Scholastic Economics: Survival and Lasting Influence from the Sixteenth Century to Adam Smith.” The Quarterly Journal of Economics 69, no. 2 (May 1955): 161. https://doi.org/10.2307/1882146.
Sarono, Agus. “Explorasi Hukum Riba Dari Berbagai Macam Pandangan Serta Penerapan Ilmu Hukum Dalam Aplikasinya.” Diponegoro Private Law Review 7, no. 1 (2020): 17–27.
Sattar al-Harran, Saad Abdul. Islamic Finance: Partnership Finance. Kuala Lumpur: Pelanduk Pubs, 1993.
Shihab, M. Quraish. Al-Qur’an Dan Maknanya. Pisangan: Lentera Hati, 2010.
———. Membumikan Al-Qur’an. Bandung: PT Mizan Pustaka, 2004.
Siddiqi, Mohammad Nejatullah. “Islamic Banking And Finance In Theory and Practice: A Survey Of State Of The Art.” Islamic Economic Studies 13, no. 2 (February 2006).
Syafe’i, Rachmat. Fiqih Muamalah. Bandung: Pustaka Setia, 2004.
Tohir, Kaslan A. Economics at a Glance. Bandung: Van Hoeve Publishing, 1955.
University of Cape Coast, Cape Coast, Ghana, West Africa, Jibrail Bin Yusuf, Hassan Shakeel Shah, University of Management and Technology, Lahore, Pakistan, Mohammad Ayaz, University of Management and Technology, Lahore, Pakistan, Jabal Muhammad Buaben, and University of Brunei Darussalam, Brunei Darussalam. “Interest-Free Banking and Finance in Brunei Darussalam: Present Realities and Future Prospects.” Journal of Islamic Thought and Civilization 08, no. 02 (December 2018): 35–62. https://doi.org/10.32350/jitc.82.03.
Zaman, M. Raquibuz. “Usury (Riba) and the Place of Bank Interest in Islamic Banking and Finance.” International Journal of Banking and Finance 6 (2009). https://doi.org/10.32890/ijbf2009.6.1.8379.
Ahmad, Abu Umar F., and M. Kabir Hassan. “Riba and Islamic Banking.” Journal of Islamic Economics, Banking and Finance 3, no. 1 (2007).
Ahmad, Imad-ad-Dean. “Riba and Interest: Definitions and Implications.” In 22ne Conference of American Muslim Social Scientists, 1993.
Ahmed, Saima Akbar. “Global Need for a New Economic Concept.” International Journal of Islamic Financial Services 1, no. 4 (2000).
Al-Agha, Samah. “Money Laundering from Islamic Perspective.” Journal of Money Laundering Control 10, no. 4 (October 23, 2007): 406–11. https://doi.org/10.1108/13685200710830899.
Al Banna Choiruzzad, Shofwan, and Bhakti Eko Nugroho. “Indonesia’s Islamic Economy Project and the Islamic Scholars.” Procedia Environmental Sciences 17 (2013): 957–66. https://doi.org/10.1016/j.proenv.2013.02.114.
Al-Jazairi, Abu Bakar Jabir. Minhaj Al-Muslim. Kairo: Maktabah Dar al-Turas, 2004.
Al-Maragi, Ahmad Mustafa. Tafsir Al-Maragi. Vol. 4. Mesir: Mustafa Al-Babi Al-Halabi, 1974.
Amrullah, Abdul Malik Abdul Karim. Tafsir Al-Azhar. Cet. 1. Jakarta: Penerbit Gema Insani, 2015.
Aqdas, A. K. “Islamic Banking Is a Mere Myth.” Dawn (blog), September 27, 2009. www.dawn.com/news/881273.
Chapra, M. Umer. “The Nature Of Riba In Islam.” Millah 8, no. 1 (August 16, 2008): 107–21. https://doi.org/10.20885/millah.vol8.iss1.art7.
Departemen Pendidikan dan Kebudayaan. Kamus Besar Bahasa Indonesia. Jakarta: PT. Balai Pustaka, 1991.
Disli, Mustafa, Ahmad Hatam, and Shakir Jalaly. “Faithful Finance: Unlocking Banking Islamization in Afghanistan.” Economies 11, no. 7 (July 12, 2023): 189. https://doi.org/10.3390/economies11070189.
Gad Makhlouf, A. “The Doctrinal Development of Contemporary Islamic Law: Fiqh Academies as an Institutional Framework.” Oxford Journal of Law and Religion 10, no. 3 (2021): 464–86. https://doi.org/10.1093/ojlr/rwac005.
Hadi, Abd, and Muhammad Arfan Mu’ammar. “THE VARIANT OF THOUGHT OF THE MUHAMMADIYAH PRICE ELITES IN CONDUCTING USURY AND INTEREST OF BANK.” Humanities & Social Sciences Reviews 7, no. 4 (October 7, 2019): 997–1003. https://doi.org/10.18510/hssr.2019.74136.
Harahap, Burhanudin, and Tastaftiyan Risfandy. “Islamic Organization and the Perception of Riba (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia.” SAGE Open 12, no. 2 (April 2022): 215824402210979. https://doi.org/10.1177/21582440221097931.
Hassan, Ahmad. Some Discussion of the Problem of Riba. Bangil: Unity, 1975.
———. Tafsir Al-Furqan. Surabaya: al-Ikhwan, 1986.
Hassan-Bello, Abdulmajeed Bolade. “RIBA AND ISLAMIC BANKING, EXAMINING THE PRACTICES OF JAIZ BANK PLC, NIGERIA.” AHKAM : Jurnal Ilmu Syariah 18, no. 1 (January 12, 2018). https://doi.org/10.15408/ajis.v18i1.9818.
Hasyim, Muhammad Syarif. “Bunga Bank: Antara Paradigma Tekstual Dan Kontekstual.” HUNAFA: Jurnal Studia Islamika 5, no. 1 (April 15, 2008): 45. https://doi.org/10.24239/jsi.v5i1.151.45-58.
Hidayah, Nur, and Abdul Azis. “Implementation of Progressive Law in Sharia Banking Dispute Settlement: Case Study of Religious Court Decisions in Indonesia.” Ulumuna 27, no. 1 (June 26, 2023): 227–57. https://doi.org/10.20414/ujis.v27i1.652.
Ilyas, Yunahar. Tafsir Tematik Cakrawala Al-Qur’an. Yogyakarta: Suara Muhammadiyah, 2003.
Jami’an, Rizal Bin. “Ijtihad Jama’i Nahdatul Ulama (NU) Dan Ijtihad Qiyasi Muhammadiyah Tentang Bunga Bank Dalam Praktik Perbankan.” Jurnal Hukum Respublica 16, no. 1 (June 13, 2018): 20–35. https://doi.org/10.31849/respublica.v16i1.1424.
Jazîrî, Abd al-Rahmân al-. Kitâb Al-Fiqh ‘Alâ al-Mazâhib al-Arba’Ah. Vol. 2. Beirut: Dâr al-Kutub al-‘Ilmiyyah, 1990.
Jurjani, Ali bin Muhammad al-. Kitab Al-Ta’rifat. Beirut: Dar al-Kutub al-‘Ilmiyyah, n.d.
Kasdi, Abdurrahman. “Analisis Bunga Bank Dalam Pandangan Fiqih.” IQTISHADIA: Jurnal Ekonomi & Perbankan Syariah 6, no. 2 (2013). http://dx.doi.org/10.21043/iqtishadia.v6i2.1111.
Kementrian Agama RI. Al-Qur’an Dan Terjemahnya. Jakarta Timur: Latnah Pentashihan Mushaf Al-Qur’an, 2019.
Khan, Muhammad Akram. What Is Wrong with Islamic Economics?: Analysing the Present State and Future Agenda. Edward Elgar Publishing, 2013. https://doi.org/10.4337/9781782544159.
Kuran, Timur. The Long Divergence: How Islamic Law Held Back the Middle East. New York: Princeton University Press, 2011. https://press.princeton.edu/books/hardcover/9780691147567/the-long-divergence.
Maksum, Muhammad. “The Mechanism of Avoiding Riba in Islamic Financial Institutions: Experiences of Indonesia and Malaysia.” JURIS (Jurnal Ilmiah Syariah) 22, no. 2 (December 15, 2023): 235. https://doi.org/10.31958/juris.v22i2.6952.
Malîbary, Syekh Zainuddin Ibn Abd Aziz al-. Fath Al-Mu’în. Semarang: Toha Putera, n.d.
Mansoor Khan, Mohammad, and M. Ishaq Bhatti. “Why Interest‐free Banking and Finance Movement Failed in Pakistan.” Humanomics 22, no. 3 (July 1, 2006): 145–61. https://doi.org/10.1108/08288660610703320.
Mas’adi, Ghufton A. Fiqh Muamalah Kontekstual. Jakarta: PT. Raja Grafindo Persada, 2002.
Masvood, Yaaseen, and Y. Lokeswara Choudary. “Islamic Banking-A Cross Cultural Patronage Study among the Students in Chennai.” Asian Social Science 11, no. 4 (January 14, 2015): p310. https://doi.org/10.5539/ass.v11n4p310.
Mushlihin, Imam Anas. “The Thought of Ahmad Hassan About Riba.” Realita 1, no. 1 (n.d.): 2004.
Muslehuddin. Bankin and Islamic Law, Terj. Aswin Simamora, "Sistem Perbankan Islam. Jakarta: Rineka Cipta, 1990.
Omar Farooq, Mohammad. “Exploitation, Profit and the Riba ‐interest Reductionism.” International Journal of Islamic and Middle Eastern Finance and Management 5, no. 4 (November 23, 2012): 292–320. https://doi.org/10.1108/17538391211282818.
Patinkin, D. Studies in Monetary Economics. New York: Harper and Row, 1972.
Rafiq, Ainur. Mazhab Jogja: Menggagas Paradigma Ushul Fiqh Kontemporer. Yogyakarta: Ar-Ruzz Media, 2002.
Rahman, Fazalur. Doktrin Ekonomi Islam. Vol. 3. Yogyakarta: PT Dana Bhakti Prima Yasa, 1995.
Rahman, Fazlur. Riba and Interest’. Islamabad: Islamic Studies, 1964.
Razi, Iman Fahruddin al-. Al-Tafsir al-Kabir Aw Mafatih al-Ghaib. Beirut: Dar al-Kutub al- ‘Ilmiyyah, n.d.
Ridha, Muhammad Rasyid. Tafsir Al-Qur’an al-Hakim. Vol. 4. Mesir: Dar al-Manarah, 1957.
Roover, Raymond De. “Scholastic Economics: Survival and Lasting Influence from the Sixteenth Century to Adam Smith.” The Quarterly Journal of Economics 69, no. 2 (May 1955): 161. https://doi.org/10.2307/1882146.
Sarono, Agus. “Explorasi Hukum Riba Dari Berbagai Macam Pandangan Serta Penerapan Ilmu Hukum Dalam Aplikasinya.” Diponegoro Private Law Review 7, no. 1 (2020): 17–27.
Sattar al-Harran, Saad Abdul. Islamic Finance: Partnership Finance. Kuala Lumpur: Pelanduk Pubs, 1993.
Shihab, M. Quraish. Al-Qur’an Dan Maknanya. Pisangan: Lentera Hati, 2010.
———. Membumikan Al-Qur’an. Bandung: PT Mizan Pustaka, 2004.
Siddiqi, Mohammad Nejatullah. “Islamic Banking And Finance In Theory and Practice: A Survey Of State Of The Art.” Islamic Economic Studies 13, no. 2 (February 2006).
Syafe’i, Rachmat. Fiqih Muamalah. Bandung: Pustaka Setia, 2004.
Tohir, Kaslan A. Economics at a Glance. Bandung: Van Hoeve Publishing, 1955.
University of Cape Coast, Cape Coast, Ghana, West Africa, Jibrail Bin Yusuf, Hassan Shakeel Shah, University of Management and Technology, Lahore, Pakistan, Mohammad Ayaz, University of Management and Technology, Lahore, Pakistan, Jabal Muhammad Buaben, and University of Brunei Darussalam, Brunei Darussalam. “Interest-Free Banking and Finance in Brunei Darussalam: Present Realities and Future Prospects.” Journal of Islamic Thought and Civilization 08, no. 02 (December 2018): 35–62. https://doi.org/10.32350/jitc.82.03.
Zaman, M. Raquibuz. “Usury (Riba) and the Place of Bank Interest in Islamic Banking and Finance.” International Journal of Banking and Finance 6 (2009). https://doi.org/10.32890/ijbf2009.6.1.8379.
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2024-04-04
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Bank Interest in the Contemporary Era: Problem of Ad’afan Muda’afah Interpretation in Determining Law of Usury. (2024). MILRev: Metro Islamic Law Review, 3(1), 43-65. https://doi.org/10.32332/milrev.v3i1.8948
