Analysis Of Islamic Law On Bank Interest: Comparison Of The Concepts Of Usury And Modern Banking

Abstract

This study aims to analyze bank interest from a muamalah jurisprudence perspective by examining conceptual aspects, its application in the modern banking system, its comparison with usury, and the views of classical and contemporary Islamic scholars. The method used is normative legal research with a conceptual and analytical approach to Islamic legal sources and related literature. The results of the study indicate that bank interest in the conventional banking system functions as a return on deposits and a fee for loans, which are legally permissible. However, from a classical Islamic jurisprudence perspective, bank interest is viewed as identical to usury, which is prohibited because it contains additional elements without fair compensation. Meanwhile, contemporary Islamic scholars have more varied views, with some continuing to prohibit bank interest, while others permit it under certain conditions based on considerations of emergency and public interest. These differing views demonstrate the dynamics of ijtihad in responding to developments in the modern economic system. Therefore, a comprehensive understanding and development of the Islamic financial system as an alternative that aligns with Islamic principles is necessary.