The Historic Judgement on Interest, Federal Shariat Court

Iii banking and productive loans in the age of

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(iii) Banking and Productive Loans in the Age of Antiquity 75. Thirdly, it is not correct to say that commercial or productive loans were not in vogue when riba was prohibited. More than enough material has now come on the record to prove that commercial and productive loans were not foreign to the Arabs, and that loans were advanced for productive purposes both before and after the advent of Islam. In fact the academic and historical research has discovered the fallacy of the impression that mercantile loans and banking transactions are the invention of the 17th century CE. Modern discoveries have shown that the history of banking transactions refers back to a period not less than two thousand years before Christ. The Encyclopaedia Britannica, while discussing the history of banks, has detailed the early traces of the banking transactions. The relevant article begins with the following remark:
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