In Islam, Riba / interest is prohibited because it encourages
- Concentration of wealth in few hands
- Creation of monopolies
- Greed and selfishness leading to injustice and oppression
The human goal of achieving the well being of all the members of the society cannot be attained by concentrating primarily on the material constituents of well-being and making maximization of wealth as the main objective of Economics. It is also necessary to raise the spiritual content of well being and reduce all the symptoms of discontent-Capitalism and Socialism have both failed to lead mankind to such an overall well-being and this is exactly what the Islamic economic system aims to achieve, as it had done in the past when this system was implemented by the great Muslim ancestors.
Islamic economic system consists of institutions, organizations, and social values by which natural, human and man-made resources are used to produce, exchange, distribute and consume wealth / goods and services under the guiding principles of Islam to achieve “FALAH” (well-being) in this world and also hereafter.
Islamic Finance 