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Minister's Remark Sparks Debate on Islamic Banking: Challenging Traditional Views on Loans

Minister's Remark Sparks Debate on Islamic Banking: Challenging Traditional Views on Loans
Thursday 21 March 2024 - 16:10
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Morocco's Islamic Affairs Minister, Ahmed Taoufiq, recently stirred controversy with his assertion that not all bank loans violate Islamic principles. During a Royal Ramadan Lecture, he challenged the prevailing consensus among Islamic scholars that charging or paying interest on loans, known as "riba" in the Quran, is strictly forbidden.

Taoufiq's argument, presented to the nation, contends that modern lending practices differ significantly from historical contexts of exploitation through compounded interest. He posits that contemporary borrowing often serves essential needs or investment purposes, with interest rates tending to decrease as economies prosper, while excluding deferred payments and service charges.

Citing the establishment of Islamic banks in Morocco, authorized by regulatory approval in 2018 and governed by over 170 fatwas (religious edicts), Taoufiq heralded this as a "renewal" of the Islamic financial system.

However, Taoufiq's remarks have triggered a fierce backlash from prominent Islamic scholars. Leading the opposition is Hassan Kettani, with a substantial following on social media platforms, who vehemently rebuked the minister's stance on Facebook.

Kettani's critique accuses Taoufiq of condoning usurious loans forbidden by the Quran, Sunnah, and consensus. He challenges the notion of "renewal," arguing that any reinterpretation should stem from Sharia principles rooted in divine revelation, not human intellect or desire.

Kettani's questioning extends to whether Taoufiq's statements represent his personal views or the stance of Morocco's Supreme Council of Scholars. This response has reignited a longstanding debate within Islamic jurisprudence, delving into the boundaries of religious interpretation amid evolving financial landscapes.

As the controversy unfolds, Taoufiq's remarks provoke essential discussions about the compatibility of Islamic finance with contemporary economic practices, highlighting the complexities of navigating tradition and innovation in the realm of religious interpretation.


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