Critique of the Reduction of Riba to Interest: A Ma'na cum Maghza Analysis of QS al-Baqarah (2): 275–279 and its Relevance to Substantive Justice in Islamic Banking
DOI:
https://doi.org/10.37680/ijief.v6i2.10127Keywords:
Riba, Interest, Ma'na cum Maghza Hermeneutic, Substantive JusticeAbstract
This study critiques the reduction of riba to interest through a ma'na cum maghza hermeneutical analysis of QS Al-Baqarah (2): 275–279, employing library research and thematic exegesis (maudhu'i). It addresses three gaps: the dominance of legalistic-formalistic approaches, the absence of practical substantive justice indicators, and the lack of structural critique of financial capitalism. The novelty lies in integrating hermeneutics with structural critique, formulating five operational ethical indicators, and offering policy recommendations. The findings reveal that equating riba with interest is methodologically and theologically flawed. The substantive message (maghza) is the principle lā tazlimūna wa lā tuzlamūn, rejecting all exploitation, including risk-free profit and time commodification. The 80–90% dominance of murabahah and tawarruq in Islamic banking portfolios demonstrates the reproduction of interest-in-disguise logic. Five ethical indicators are formulated: exchange justice, risk-reward proportionality, protection of vulnerable parties, debt spiral prevention, and transparency. The reconstruction of maghza yields three substantive justice indicators: non-exploitation of vulnerable parties, balanced risk-sharing, and real-sector orientation with social impact. This study offers a critical-transformative framework for Islamic banking to move beyond formal compliance toward substantive justice.
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