Abrahamic Banking: The Ancient Cure for Modern Financial Injustice
In a world increasingly seeking financial solutions that are equitable, inclusive, and sustainable, the global resurgence of interest-free or non-interest banking offers a pathway rooted not in novelty, but in ancient moral wisdom. What many today know as Islamic Banking, Participatory Banking, Ethical Finance, or Alternative Finance is, in truth, a practice embedded in the very foundation of the Abrahamic faiths, Judaism, Christianity, and Islam. This is not just Islamic banking; it is Abrahamic Banking.
Judaism, through its Torah and rabbinical tradition, strictly prohibits lending with interest. In Exodus 22:24, it is clearly stated: “When you lend money to any of my people, to the poor among you, you shall not be to him as a creditor, nor shall you impose upon him any interest.” Similarly, Deuteronomy 23:19 warns: “Do not charge your brother interest, whether on money or food or anything else that may earn interest.” These commandments were not mere ceremonial laws, they were social directives designed to protect the vulnerable and maintain equity in the community.
The Christian Gospels and Roman Catholic tradition echo this stance. In Luke 6:35, Jesus commands: “But love your enemies, do good, and lend, hoping for nothing in return…” This was more than moral counsel. It was a radical economic position in a society increasingly shaped by mercantile greed. Jesus saw the damage that the unjust accumulation of wealth through usury could inflict on the fabric of society, creating inequality, feeding greed, and impoverishing the masses. His dramatic act of overturning the tables of the moneylenders in the temple was a statement of moral clarity: financial exploitation has no place in a just society.
The Catholic Church historically condemned usury through numerous councils. From the Council of Elvira in 305 A.D. to the First Council of Nicea in 325 A.D., and later the Second Lateran Council in 1139 A.D., the Church denounced usury as a grave sin. St. Thomas Aquinas, one of the Church’s greatest theologians, declared: “To take usury for money lent is unjust in itself… this evidently leads to inequality, which is contrary to justice.”
Islam, like its Abrahamic siblings, is equally categorical. The Holy Qur’an states in Surah Al-Baqarah 2:275: “Those who devour interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity… Allah has permitted trade and forbidden interest.” Here, the Qur’an draws a sharp distinction between ethical trade, which benefits both parties, and interest-based lending, which enriches one while endangering the other.
What all these scriptures tell us is clear: interest-based lending is not merely a religious issue; it is a human issue. It transcends theology and speaks directly to economic justice. Usury, or excessive interest, is fundamentally exploitative. It allows the lender to profit regardless of whether the borrower succeeds or fails. It shifts all risk to the borrower, concentrates wealth among a few, and multiplies poverty for the rest. This economic logic of exclusion is precisely what Jesus opposed, and why all Abrahamic faiths stand against it.
Today, we witness how this system continues to make the rich richer and the poor poorer. It feeds a cycle of indebtedness that enslaves generations, particularly in developing nations. Governments take loans with steep interest rates and end up spending more on servicing debts than on schools, hospitals, or infrastructure. This is not development, it is dependency.
Yet around the world, non-interest banking is being embraced as a solution. In the United Kingdom, the government established an Islamic Finance Task Force to promote non-interest financial products, which are available to Muslims and non-Muslims alike. Germany, Luxembourg, and France have hosted Islamic banks or issued sukuk (non-interest bonds) to fund housing, infrastructure, and entrepreneurial development. South Africa and Kenya are actively expanding their non-interest banking sectors to better support community development and financial inclusion. These are not Muslim-majority nations, yet they see the practical benefits of ethical finance. This proves that non-interest banking is not confined to one religion or region,it is a universal tool for shared prosperity.
Meanwhile, in many African economies, the opposite scenario unfolds. Countries like Ghana and Nigeria are burdened by massive interest payments that consume large portions of their national budgets. These funds, which could have gone into healthcare, education, or job creation, instead service debt, often to foreign lenders with exploitative terms. Former Nigerian President Olusegun Obasanjo famously said: “All that we had borrowed up to that time was around $12 billion, and we had paid about $13 billion. Yet, they said we still owed about $28 billion… This is the cruelty of international finance.” His frustration captures the essence of the problem: interest does not just cost money, it costs sovereignty, opportunity, and dignity.
The way forward is clear. Non-interest finance provides a model where infrastructure can be financed without mortgaging the future. It offers risk-sharing, ethical investment, and stability. It encourages capital to be used productively rather than speculatively. And most importantly, it uplifts the poor instead of enslaving them in cycles of debt.
Let it be known: non-interest banking is not for Muslims only. It is for everyone, Christians, Jews, people of other faiths, and people of no faith. It is for governments, for businesses, for students, for farmers, for the marginalized and for the mainstream. It is for humanity. Any attempt to discredit or politicize it is not only intellectually dishonest but also a direct threat to global economic justice and development.
At the Islamic Finance Research Institute of Ghana (IFRIG), we believe that non-interest finance is the new norm. It is no longer a fringe idea but a global movement. We stand ready to collaborate with policymakers, financial institutions, civil society, and development partners to promote this model across Ghana and the African continent.
Let us not shy away from this opportunity. Let us embrace it, not because it is Islamic, Jewish, or Christian, but because it is just, it is ethical, and it is effective. This is not just another form of banking. This is Abrahamic Banking, a path to shared prosperity for all.
Dr. Shaibu Ali is the Director General of the Islamic Finance Research Institute of Ghana (IFRIG). He advocates for inclusive and ethical financial systems and has worked extensively on advancing non-interest finance across Africa.
