Interest - “Loan Cost” or “Sin”?
Journal Title: Annals of "Dunarea de Jos" University - Fascicle I. Economics and Applied Informatics - Year 2014, Vol 20, Issue 2
Abstract
Interest has appeared from the people need to borrow main agricultural products. Over the time, it has been the subject for many theories - for interest, and against interest- all of them having various reasons. Church has, in general, forbidden interest, but the economic reasons have won, considering fair to reward the creditor for the time passed from the moment of loaning, for the monetary devaluation because of inflation, and for the reason that money is a good which must produce profit. Nowadays, the interest rate and the way haw it modifies the report between demand and supply, is a very debated subject. The interest rate is an instrument in the hand of Governments and International Financial Organisms, and interest is used in the conventional banks from the entire world. But, in the system of Islamic Economy, interest is considered “a sin”, and the appearance of Islamic Banks is a proof for the efforts to introduce in the banking system of Muslim countries, a modality of financing which respects, from the religious point of view, what is allowed and what is forbidden.
Authors and Affiliations
Violeta ISAI, Riana Iren RADU
Keywords
Related Articles
- EP ID EP153981
- DOI -
- Views 126
- Downloads 0
The Crisis Impact on the Labour Market
The aim of this paper is to discuss the impact of the current global economic crisis on the labour market, including the risk that the recession will be followed by a jobless recovery that contributes to a lost generatio...
Relevant Results of Fish Consumer Benefits and Food Safety
The paper is focused upon the assessment of current consumer behavior as empirical arguments for designing and implementation of fish feeding and processing innovative biotechnologies which highly meet the exigencies of...
Integration Perspectives of the Communication Management within Organizations’ Policy
While the marketing specialists reach the conclusion that building a brand in the XXI century signifies customer relationship development in a permission marketing approach, the public relations starts to be the pillar o...
Analysis of International Accounting Regulations with Regards to Fair Value
Unifying the economical-financial information at an international level represents today, within the context of the globalization and integration of the financial markets around the world, an important and urgent demand....
Sustainable Development Focused on Reducing Regional Inequalities. Romania Progression as Emergent Economy
Decrease of regional disparities is one of the main goal for every single or mixed economy, such as national regions within Europe or European Union as a whole. Disparities occurrence are differently set up from on...