Question : A question was asked regarding whether or not it is permitted to work in banks.

Fatwa in Brief: It is not permitted, such work is built on usury; and it is illegal to work in any field where this happens.

Shaykh Ibn al-‘Uthaymin, 9/7/1412

Response:

The activities of some banks do not operate in opposition to [the demands and principles of] religion; while those of others do. A bank’s money is a matter of suspicion, a mixture of the permitted and the forbidden. It is legal for a Muslim to work in a bank providing that s/he does not contribute to, or participate in, the practice of riba.

Commentary:

Dealing with a bank involves the running of accounts, paying of checks, letters of credit, the internal bills between traders and banks, and the fees taken for these jobs are in no way connect to usury. Accordingly, whoever carries out these tasks is not breaking Muslim law. Nevertheless, banks also have activities that run counter to [the spirit and demand] of religion. Specifically, the lending and borrowing of money with interest, which is the main aim of any bank [is illegal according to Islamic law].

The result is a mixture of permitted and prohibited monies. Working in banks must, therefore, remain a matter of suspicion. A hadith in Bukhari and Muslim speaks to this issue directly:

The lawful is clear and the prohibited is clear. Between them, however, are some unclear matters about which most people are ignorant. So, whoever steers clear of these unclear matters is sure of his innocence in terms of religion, and in terms of his self-respect. Yet, whoever enters into the unclear issues also threatens to enter into the realm of prohibited things, just as the shepherd who grazes his sheep around the royal pasture, yet always threatens to graze them on it [and thus to break the law and be punished].

If a believer wants to be completely at ease with his/her conscience, s/he should look for a career that does not attract suspicion. Even if s/he earns less from this, and the wage covers necessities rather than luxuries [this would be better than working in a bank]. However, if a believer cannot find [unequivocally] halal work, s/he is permitted to work temporarily in this field, as it has become a matter of necessity (darura). At the same time, this person should search for a position that does not require him/her to perform prohibited, or potentially prohibited, actions. If his/her intention is true, God will make it [their search] easier. God said:

“And whosoever keepeth his duty to God, God will appoint a way out for him, and will provide for him from (a quarter) whence he hath no expectation”. (Q. 65: 2-3)

And:

“And whosoever keepeth his duty to God, He maketh his course easy for him”. (Q. 65:4)[1]

It was mentioned above that some scholars consider the interest earned in banks to be permitted (halal). Al-Shafi‘i’s [original] opinion was that only the paying of interest on gold and the like was prohibited, and that, even when it became the general currency, this prohibition should not apply to [interest earned on] money. Someone who must work in a bank [and is troubled by it] should follow the opinion of these scholars; it is better to do this than continue in a job s/he believes to be forbidden.

And God knows best.

Shaykh ‘Abd al-Muhsin ibn Nasser al-‘Ubaykan said:

Shaykh ‘Abd Allah ibn Muhammad ibn Hamid, the former head of the Higher Judicial Council (majlis al-qada‘) (r.a.) believes that working in a bank should be permitted, providing that an employee does not involve himself in riba. Shaykh ‘Ubaykan believed this opinion to be the correct one.

Dr. Anas Abu Shadi