No one has ever written anything on this topic on WWW world as I could not find any stuff related to this on Google. There is a huge difference between Israeli (Jewish) and Saudi (conventional) Banking System. We criticize Israel (Jews) for their ill treatment in Philistine and Gaza. Well, I am in consensus with all other Muslims and my stance on Israel is same as the stance of Saudi Arabia. They have occupied the area of innocent people of Philistine and all Muslim ummah is against them. Wait a minute, I just said all Muslim Ummah is against one country Israel but still we are not able to do anything against them. What is the reason behind it? Believe me, the reason is not our backward military force, the actual reason is their banking system. I will explain how and why.[irp]
Charging Interest in Saudi (Conventional) Banking and Israeli Banking: We Muslims are not even sincere to ourselves. We are more than 1.5 billion and still, we are not able to tackle 15 million Jews. If we just compare the banking system of Israel with banking system of Saudi Arabia, we will find huge differences. For example, Interest is prohibited in Judaism as well as in Islam. In Saudi Arabia, each bank is charging interest from everyone violating the teachings of Islam. Yes, most of the scholars believe this is not interest; it is just profit which is allowed in Islam. But many others also think that this is INTEREST. I will not go into details about this topic, call it whatever you want to call profit or interest. But all the banks in Saudi Arabia, as well as other Muslim countries, charge interest when they lend loans. We believe that our banking system will collapse without this but banks in Israel adopt some other approach.
The Torah and Talmud encourage the granting of loans if they do not involve interest. But the applicable Jewish Law, Halakha allows lenders to charge interest on the loan issued to Non-Jewish people. Hence, Israeli banks are not allowed to charge any interest on the loans issued to Jews. What they are doing is also wrong according to their religion but still, it shows why they are leading the entire world. There is something called unity and Jews are the best example of it in this world.
Bankruptcy in Saudi and Israeli Banking System: When a person is unable to pay his loan and interest to the bank, he declares him bankrupt. In the case of bankruptcy, Saudi or conventional banks take whatever the creditor has in his pockets and bring him to the footpath. If he is not able to pay the loan and interest, it is his problem. So, it is his punishment to spend miserable life ahead.
However, Israeli banking system treats it differently. If someone declares bankruptcy, it is not an individual problem. They treat it as a collective problem of the society and help him through different charitable organizations so that he can step up again and pay off his debts. In this way, they don’t take whatever he has from his pocket and bring him to the footpath. They observe him closely, give him more money, identify and rectify his mistakes and at the end of the day, he is a successful businessman who contributes to the well-being of the country.[irp]
Conclusion: The purpose of writing this article is to create a sense of unity among Muslims. If Jews can do it, why can’t we? Muslims pay heavy donations to build Masjids but I think building nation is more important than anything. At the time of Prophet Muhammad S.A.W, we were not having grand Masjids but we had strong unity. We were not divided in Arab and Non-Arab but connected with one phrase “Lailaha Illallah”.