Any force used to ban or limit usury will distort the market. Time has value to people, which is essentially what an interest rate is a price on. In a free market, I can't see a usury-free bank getting more investors than its interest-earning competition.
That why usury can only be prevented by softening money itself such that the cost of holding money is equal to the time-value of money which we call LIQUIDITY. That would bring the natural rate of interest (the rate that a risk-free borrower pays) down to Zero. Then a free market would be able to lend at any rate it liked as every borrower has some risk which needs to be accounted for, and Ironically risk and how it is shared is one of the factors that Islamic Banking understands very well.
- never say I think, but say God says. It is God alone who sets out His rulings to humanity and we have to follow. The fist and most important teaching is the worship God God alone without associating any partners to Him and follow/apply His rulings and listen to the prophet that has been send to you, in this case it is the prophet Mohamed (peace be upon him) who has been send to all humanity and genies.
). Does that mean my bank manager is going to hell, based on the Koran? That's one heck of an occupational safety hazard.
