Usury: Applicability of State Usury Laws to Installment Sales

Evading the ‘Taint of Usury’: The usury prohibition as a barrier to entry

Article history: Received 9 April 2009 Available online xxxx The development of capital markets in medieval Europe was shaped for centuries by the religious ban on lending money at interest. This paper examines how this prohibition developed as the outcome of strategic behavior by religious, commercial and political elites. A model is developed to analyze this hypothesis and to examine how the ...

Usury in the Purchase of Negotiable Paper

New Monetary Policies in Usury Free Banking

The aim of this research is to find monetary policy tools in usury free banking. We will review the ideas of Muslims in Iran and outside the Iran for this subject. In this work, we will explain the effects of monetary policies on economy. This article is about explanation of two subjects: In the first subject, reports about usury free banking and ways of absorbing granted facilities is presente...

A Comparative Study on Capital Formation in the Usury and Non-usury Economic Systems

The rule of ideologies which ban interest or usury which is earned through lending money has led to developing economic systems that differ from conventional economic systems in which ,interest has been entered. The presence of systems not relying on interest, in turn, has questioned the necessary motives in capital establishments through savings. In this paper, while defining the concepts of m...

Interest Rate Restrictions in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714

This paper studies the effects of interest rate restrictions on loan allocation. In 1714, the British government tightened the usury laws, reducing the maximum permissible interest rate from 6 to 5 percent. A sample of individual loan transactions from a goldsmith bank allows us to examine how interest rate restrictions affected loan allocation. Average loan size and minimum loan size increased...