A Jurisprudential and Legal Analysis of the Consequences of Usury (Riba) in Afghanistan’s Banking System During the Republican Era

Abstract

This research examines the jurisprudential and legal aspects of usury (riba) in Afghanistan's conventional banking system and analyzes its consequences on the economic, social, and legal structure. The main problem is that, despite the constitutional requirement for compliance with Islamic Sharia, the banking system has relied on interest-based mechanisms. The objective is to analyze the consequences of riba, clarify its concept from the perspective of five Islamic schools of jurisprudence, and evaluate its multidimensional consequences in Afghanistan. The research employs a descriptive-analytical method, and data were collected from jurisprudential sources, Afghan banking laws, and related literature. The study focuses on riba in the form of interest on loans as the main axis of conventional banking activity. The findings indicate that the consequences of riba are multidimensional. Economically, riba has contributed to increased inequality in wealth distribution and reduced investment in productive sectors. Socially, it has been associated with decreased public trust in the banking system and increased feelings of injustice. At the legal level, weak Sharia supervision has played a role in perpetuating this situation. Accordingly, the research concludes that reforming Afghanistan's banking system requires strengthening Sharia supervision and gradual movement toward mechanisms compatible with Islamic banking.