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Are the profits taken from a bank that declares itself to be for Islamic transactions and has a Sharia supervisory board considered usury?

1 min readAlso available in العربية

It is permissible to deposit money in banks and benefit from the profit if the bank's dealings adhere to Sharia principles. This is allowed if the contract between the two parties is a Mudarabah (profit-sharing) contract, where money is provided for investment in exchange for a percentage of the profit, without guaranteeing the principal unless there is negligence or transgression. However, if any of these conditions are not met, then it is not permissible.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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