Question: It is said that working in a bank is haram because it involves interest (usury). My question is that if everyone stops working in banks and all of us resign, how would we as customers survive? I mean where would we keep our money for safe keeping? If everyone working in a bank quits, won't the banking system collapse altogether? Can you please suggest an alternative for that as in if everyone quits working in banks, and all the banks shut down, where would we keep our money for safekeeping?

This question is posed keeping the fact in mind that even the Islamic banks are not actually Islamic in true essence. They just have different terminologies for interest/riba/usury but it's still there in some way or the other. How can this be avoided? Should we still resign from bank jobs?

Answer: Rather than reaching the extreme situation of having the banks closed, the banks should shift their system of monetary dealings to one that is more just and fair. In others words, they can replace their interest bearing dealings with other facilities which do not involve interest. This is not difficult to do, it is just a matter of whether they want to do it or not. There are many different modes of financing and there are many ways of gaining profits without using the interest based system.

As for the issue of working in the bank, this is one which the Islamic scholars have written against and have considered it unlawful because of the reasons you have mentioned. As a Muslim, if you have trust and reliance on the truth of what they have said, then it is upon you to act. If all the Muslims refrain from
working in the banking industry, then one of two things may happen.

One, is that non Muslims would continue to work, in which case the banks would not cease to function. And the other is that the banks may be forced to replace the riba system with another lawful system which is acceptable in the shariah. Whatever the case be, a Muslim must always be conscious of doing the right thing.

With respect to the issue of Islamic banks, there is a possibility that what you have mentioned may exist. This has a lot to do with the management and the directors of the Islamic bank. However, it must also be noted that quite a number of Muslims who are acquainted with the contemporary modes of financing and accounting practices may not be able to recognise the differences between that which is deemed to be Riba and that which is permissible in certain modes of Islamic financing. I have personally heard some Muslims referring to the mark up in Murabaha as Riba. This however, is totally wrong and their assumptions were based on their misconceptions of Islamic financing.

In all conditions, it is upon the management of the Islamic banks to ensure that all their activities are in accordance to the teachings of the sacred Shariah. When they have given their word to this effect, Muslims can thereafter feel safe to work at these banks and also do transactions with them. As far as the non-Islamic banks are concerned, Muslims are discouraged from working there, and using their facilities for securing one's monies can be used as a last resort.


And Allah knows best.
Mufti Waseem Khan