Episode 701: A Bank Without Interest : Planet Money To serve Muslim customers, a bank in Michigan tried to comply with both U.S. regulations and Islamic law. One problem: Islamic law prohibits charging interest.
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Episode 701: A Bank Without Interest

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Episode 701: A Bank Without Interest

Episode 701: A Bank Without Interest

Episode 701: A Bank Without Interest

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  • <iframe src="https://www.npr.org/player/embed/477956675/478009318" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Courtesy of Stephen Ranzini
University Bank is a community bank in Ann Arbor, MI. When they started offering Islamic Finance products, things got complicated
Courtesy of Stephen Ranzini

Stephen Ranzini runs University Bank in Michigan, and he prides himself on serving the local community. But one day, a Muslim man walked into his office and said: If your bank is so great at community service, how come you're not serving my community?

According to many scholars, Islamic law prohibits charging interest. Interest, of course, is pretty fundamental to banking.

Stephen Ranzini decided to find out: Is it possible to do what a bank does without charging interest?


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