Today, ulama mostly are of the opinion that ‘Islamic banking’ is halal, and some of the ulama say it is forbidden to use conventional banking because conventional banks are based on riba (usury).
However, when we look deeper into the matter, we will find that there really isn’t any difference between the so-called islamic banking and the conventional banks. It’s true that conventional banks have interest rates, and that is clearly riba.
Unfortunately, Islamic banks are no different. Since Allah made trade halal and riba haram, Islamic banks abused this verse by using the caveat of ‘trade’ to cover up their evil business of riba when what they are doing is essentially riba.
In the end, the ulama justified the use of Islamic banking just because the name is ‘trade’ and not ‘riba’. Then they tell the people to use Islamic banks although the people have to pay more rather than just using conventional banks. What’s the point of Islamic banking when you have to end up paying more?????
Also, the purpose Allah made riba haram is because riba oppresses the people. So the aim of Islamic banking is suppose to get rid of this sick oppression, not making a new form of oppression. I mean this is very simple and logical! Even one of the maqasid al-syariah (objectives of syariah) is hifz al-maal (protection of wealth). Every ruling in Islam is suppose to be in accordance with maqasid al-syariah but how in the world is Islamic banking in accordance with hifz al-maal?
In the end, what should be our yardstick to measure the truth of something is the Quran.