The Problem with Interest

by Talek El-Diwany

Tarek El Diwany's detailed and forthright commentary on the nature of usury and modern banking has attracted a wide readership since it was first published in 1997. This new edition has been extended with material arising from the recent financial crisis and includes a wealth of academic and popular references for readers who wish to delve deeper into the topic.In this third edition of The Problem With Interest, evidence arising from the recent financial crisis has been included to support the main themes of the 1997 and 2003 editions. The author's experience in both secular and Islamic finance help him to provide a practical and relevant commentary on the state of the modern financial system and the Islamic alternative. A description is given in detailed but accessible terms of the extent to which interest-based finance is now affecting humanity and a passionate case is made for reform of the fractional reserve banking system. In a critique of modern Islamic banking and finance, some searching questions are asked of the practices that are currently in vogue, and a new model is proposed based upon traditional understandings of Islam. This edition adopts a standard transliteration scheme for Arabic terminology and includes a wealth of academic and popular references for readers who wish to delve deeper into the topic.

Genres: Economics, Islam, Nonfiction, Finance, Religion, Business

208 pages, Hardcover

First published January 1, 2003

Reviews

[ctwayfarer · Rating 5 out of 5]

Ground-breaking. Cutting-edge and stimulating. This truly is a show-stopping critique of some prevailing ideas in modern economics, from an influential Muslim thinker. What is the problem with discounted cash flow analysis? Why is monetary reform urgent? What is wrong with interest - fundamentally, regardless of your worldview or religion? He also delves into stimulating ideas about thermoeconomics and the rise and fall of civilizations. A splendid, must-have read if you love economics!

[James Kirk · Rating 5 out of 5]

A heavy but very informative read. Will be rereading to absorb all the details.

[SeaGate · Rating 4 out of 5]

Ada banyak hal yang terjadi di perbankan Islami yang (sebetulnya) tidak Islami - banyak, bukan seluruhnya. Banyak produk perbankan Islami adalah riba yang berlabel (cap) Islami. Hal ini terjadi karena sistem tempat bank Islam beroperasi adalah sistem berbasis bunga. Anda tidak dapat menjalankan keuangan Islam dalam sebuah gelembung, sebuah gelembung kecil yang melayang di lautan riba.

[Tural Mammadov · Rating 5 out of 5]

Excellent research on history of interest and its detrimental effect on society.