Islamic Banking

[Oldandeasilyconfused]

Christianity got around the prohibition against usury by the simple expedient of changing the definition.

For centuries in Christendom,'usury' meant "lending money at ANY interest"and was forbidden to Christians. That is one reason Jews became the bankers of Europe.


Gradually, over time,the meaning of 'usury' was changed to " lending money at UNREASONABLE interest" This is the definition used today by Christian apologists, unswayed by anything as prosaic as evidence.


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Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate (as well as charging a fee for the use of money, such as at a bureau de change). In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law. The term is largely derived from Christian religious principles; Riba is the corresponding Arabic term and ribbit is the Hebrew word.

The pivotal change in the English-speaking world seems to have come with the permission to charge interest on lent money[4]: particularly the 1545 act "An Acte Agaynst Usurie" (37 H.viii 9) of King Henry VIII of England (see book references).

http://en.wikipedia.org/wiki/Usury