The Ruling on Business Involvement With Merchant Banks?What is an Islamic view?

Decision:

The 32nd Muzakarah (Conference) of the Fatwa Committee of the National Council for Islamic Religious Affairs Malaysia held on 10th -11th June 1993 has discussed the ruling on business involvement with merchant banks. The Committee has decided that:

1. Working in bank or financial institution is permissible

2. Bank or financial institution loan is forbidden unless because of emergency

3. Depositing money in bank without taking the interest is permissible

4. Interests from bank or financial institutions are unlawful (haram) for personal use and the money should be given to the Baitulmal

5. Accepting gift and money from bank and financial institutions such as scholarship is permissible

6. Lending premises to bank is forbidden

7. Owning bank shares that operates based on riba (usury) is forbidden.