Zakat, Interest and the Banks

Ustad Bediuzzaman points out that it was the Jews who founded the banks:

"...two statements of the Qur'an directed at the Jews, comprise the two fearsome general rules, that their nation hatches plots in human social life with their trickery. For they have shaken human society by making labour contest capital and causing the poor to clash with the rich by founding banks through usury and compound interest, and amassing wealth through wiles and fraud."

The Words - 425

and he explains the necessity of zakat and the harm of interest as follows:

"Since the Qur'an's principles and laws have come from pre-eternity, they shall go to post-eternity. They are not condemned to grow old and die like civilization's laws. They are always young and strong. For example, despite all its societies for good works, all its establishments for the teaching of ethics, all its severe discipline and regulations, civilization has been unable to contest the All-Wise Qur'an on two of its matters, and has been defeated by them. These two matters are:

Be steadfast in performing the prayers, and give zakat, (Qur'an: 2:43)

and,

Allah has permitted trade and forbidden usury. (Qur'an: 2:275)    

We shall describe them, this miraculous victory, by means of an introduction. It is like this:

As is proved in Isharat al-I'jaz, just as one phrase is the source of revolutions among humankind, so another is the origin of all immorality.

First Phrase: "So long as I'm full, what is it to me if others die of hunger."

Second Phrase: "You work so that I can eat."

Yes, the upper and lower classes in human society, that is, the rich and the poor, live at peace when in equilibrium. The basis of that equilibrium is compassion and kindness in the upper classes, and respect and obedience in the lower classes. Now, the first phrase has incited the upper classes to practise oppression, immorality, and mercilessness. And just as the second has driven the lower classes to hatred, envy, and to contend the upper classes, and has negated man's tranquility for several centuries, so too this century, as the result of the struggle between capital and labour, it has been the cause of the momentous events in Europe, well-known by all. Thus, together with all its societies for good works, all its establishments for the teaching of ethics, all its severe discipline and regulations, it could not reconcile these two classes of mankind, nor could it heal the two fearsome wounds in human life. The Qur'an, however, eradicates the first phrase with its injunction to pay zakat, and heals it. While it uproots the second phrase with its prohibition on usury and interest, and cures that. Indeed, the Qur'anic verse stands at the door of the world and declares usury and interest to be forbidden. It reads out its decree to mankind, saying: 'If the door of strife is to be closed, close first the door of usury and interest!' It forbids its students to enter it."

The Words - 431

"The Life of Revolution Sprang From the Death of Zakat and the Life of Usury

The origin of all revolutions, all anarchy and corruption; the inciter and source of evils, depravity and abomination, are two phrases, or one or two words:

The first is this: "I'm full, so what is it to me if others die of hunger?" And the second: "You suffer, so I can be comfortable. You work so that I can eat. The food's for me, labouring's for you."

There is one single cure for the fatal poison of the first phrase, that will cut it at the root and heal it:

That is the zakat of the Shari'a, a pillar of Islam. In the second phrase is a tree of Zaqqum; what will extirpate it is the prohibition on usury and interest.

If mankind wants what's best, and it loves life, it must impose zakat and abolish usury and interest.

  * * *

If Humankind Wants Life, It Must Put to Death Usury of Every Sort

Relations between the upper and lower classes have been cut. From below arise cries of revolution, shouts of revenge, screams of hatred and envy.

From above descend fires of tyranny and scorn, the burden of arrogance, the inciter of oppression.

What should arise from below are love, obedience, respect, and conformity. And from above should descend compassion and bounty, kindness and education.

If mankind wants these, it should embrace zakat and drive out usury and interest.

Qur'anic justice stands at the door of the world telling usury and interest: "No entry! You have no right to enter! Return whence you came!"

Mankind did not heed this command and received a blow; {(*): This is a powerful prediction. Mankind did not listen, and received an awesome blow with this Second World War.} it should heed it now before receiving one more severe."

The Words - 763

"Usury and Interest Cause Absolute Harm to Islam

Usury is the cause of idleness, it extinguishes enthusiasm for work.

The profit of the doors of usury and their containers, the banks, is always for the worst group of mankind, the infidels.

The infidels' profits go to the worst of them, that is, the oppressors.

The profit of the oppressors always goes to the worst of them; that is, the dissolute; it causes the World of Islam absolute harm.    In the view of the Shari'a all mankind cannot always be prosperous. For a belligerent infidel is disrespectful, unchaste, and his blood is spilt for nothing, always."

The Words - 787

"It is to prevent the banks, the containers of interest, which are instrumental in the concentration of wealth in selfish hands. Yes, with these containers, wealth and possession are gathered in the hands of few men."

Sunuhat - 108

Ustad reminds us that it is not natural for people to work for a salary and that employees should be partners in companies in certain proportions:

"Mankind Smashed Slavery, So Will It Smash Wage-Earning

In a dream I said: The skirmishing between nations and states is making way for fierce battle between the social classes.

For in the era of slavery, man did not want slavery and smashed it, spilling his blood. Now he has become a wage-earner; he bears that burden and will smash it too.

Mankind has grown old, having passed through five stages: primitive nomadism, slavery, captivity; now the wage-earning age has begun and is passing."

The Words - 763

Nur Way