Post by rituritu on Sept 10, 2023 4:32:56 GMT -7
Understanding and Concept of Usury in Bank Interest
Usury, in a financial and economic context, refers to profits obtained from lending money or assets, which exceed the amount lent itself. In the conventional banking system, usury is often represented by interest applied to loans or deposits. It generates profits for the bank by charging a certain amount of interest on top of the amount owed or deposited.
Initially, usury was considered an unethical practice in many religions and cultures, including Islam, Christianity, and Judaism. In Islam, usury is strictly prohibited in the Koran, because it is considered exploitation and oppression of those in need.
Case studies on economic inequality reveal the significant social impact of usury practices in conventional bank interest. These impacts include:
Income and Wealth Inequality: Usury practices in the Phone Number List bank interest system can result in the concentration of wealth in the hands of those who are already rich. Those who have access to low-interest loans tend to get richer, while those who have difficulty getting loans have to pay higher interest rates, exacerbating income and wealth inequality.
Poverty Cycle: People trapped in a cycle of poverty often find it difficult to get access to low-interest loans, so they have to rely on high-interest loans to address immediate needs. This deepens poverty and limits social mobility.
Financial Crisis: Usury practices in bank interest can be one of the main causes of financial crises. When high-interest debt cannot be repaid, it can lead to bankruptcy of individuals, businesses, and even countries. An example is the mortgage crisis of 2008 which had its roots in the provision of loans with high variable interest rates.
Usury, in a financial and economic context, refers to profits obtained from lending money or assets, which exceed the amount lent itself. In the conventional banking system, usury is often represented by interest applied to loans or deposits. It generates profits for the bank by charging a certain amount of interest on top of the amount owed or deposited.
Initially, usury was considered an unethical practice in many religions and cultures, including Islam, Christianity, and Judaism. In Islam, usury is strictly prohibited in the Koran, because it is considered exploitation and oppression of those in need.
Case studies on economic inequality reveal the significant social impact of usury practices in conventional bank interest. These impacts include:
Income and Wealth Inequality: Usury practices in the Phone Number List bank interest system can result in the concentration of wealth in the hands of those who are already rich. Those who have access to low-interest loans tend to get richer, while those who have difficulty getting loans have to pay higher interest rates, exacerbating income and wealth inequality.
Poverty Cycle: People trapped in a cycle of poverty often find it difficult to get access to low-interest loans, so they have to rely on high-interest loans to address immediate needs. This deepens poverty and limits social mobility.
Financial Crisis: Usury practices in bank interest can be one of the main causes of financial crises. When high-interest debt cannot be repaid, it can lead to bankruptcy of individuals, businesses, and even countries. An example is the mortgage crisis of 2008 which had its roots in the provision of loans with high variable interest rates.
