Category: Business Matters
Fatwa#: 39413
Asked Country: Indonesia

Answered Date: Dec 22,2017

Title: Islamic Banking


Assalamu'alaikum wa rahmatullahi wa barakatuh.

Thank you so much for answering my early question in a very detailed, i pray that all of your time and effort in islamweb will grant you all the happines in this world plus the highest heaven in the afterlife.

I have quite alot questions about islamic banking. Please answer this kindly.

1. I opened 4 islamic bank account in my country, but i've read in some islamic magazine that islamic bank is not pure "islamic", meaning they're still doing forbidden activities such as riba etc. If you were me, what would you do, trust this magazine and did not invest your money in the bank or ignore them?

2. I need some cash to start a new business, can i take a loan from islamic bank? (Where are some scholars thought the islamic bank here isn't really 100% "islamic")

3. I need to study about Islamic Banking and Economy of Islam, Can you guide me where to start? (links, books, ulamaa, places to study etc)

4. I've already used my islamic bank account to pay monthly bill such as electricity, water, phone etc. Now i cannot prove they're truly doing something forbidden, does this mean i cannot save my money in the bank?

5. Can you tell me what islamic bank that truly following the rules of islam?

6. As far as i know islamic bank operates only by the permissions of our council of ulamaa, now if there are some scholars said the islamic bank doing something prohibited what should we do? I need their service for my business.
Thank you so much.

Jazaakallahu khairan.


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

You have inquired about the following issues:

  1. Should I trust an Islamic magazine that says Islamic banks are not Islamic?
  2. Can I take a loan from an Islamic bank?
  3. Where can I learn about Islamic banking and economics?
  4. Can I keep my money in a bank that claims to be Islamic but may not be so?
  5. Which bank is truly Islamic?
  6. May I use the services of a bank that some scholars claim engages in prohibited activities?

We are not in a position to comment on all the points as we require detailed information about the bank in reference. However, Islamic banking is possible and is successfully operating in many places.

You may refer to your local mufti who understands the concept of Islamic banking for guidance.

You may study “An Introduction to Islamic Finance” by Mufti Taqi Usmani (hafizahullah) which can be found at:

You may also listen to the discourses of my teacher Mufti Ebrahim Desai (hafizahullah) which can be found at:


And Allah Ta‘ālā Knows Best.

Lutfi Alam

Student, Darul Iftaa

New York, USA

Checked and Approved by:
Mufti Ebrahim Desai.

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