Evading the ‘Taint of Usury’: The usury prohibition as a barrier to entry
نویسنده
چکیده
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 prohibition developed over time. It suggests that an important reason for the persistence of the ban was that it created a barrier to entry that enabled secular rulers, the Church, and a small number of merchant-bankers to earn monopoly rents. © 2010 Elsevier Inc. All rights reserved. JEL classification: N23 G21
منابع مشابه
Social harm of riba (Uses) in reserch of Social commentary of the Quran
According to the Qur'an, usury is an insane desire. This economic practice is common in society and some people are looking for ways to solve it. Social commentators have deduced the absolute prohibition of this economic act, which is the subject of this study. Descriptive analytical study with social orientation in interpretation shows that promoting hatred and escalating class di...
متن کاملA 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...
متن کاملIntroducing a Model to Measure the Corporate Governance Index in Usury-Free Banking
Good implementation of corporate governance principles is considered as an important component for stability and soundness of a financial institution. An extensive body of literature has reviewed the effects of corporate governance on the performance of corporations. The majority of these studies have found more corporate values for implementing the principles. Therefore, the assessment of comp...
متن کاملStatement of Investment Deposits Performance: Improvement of Accountability in the Business Model of Usury-free Banking in Iran, Consistant with IFRS
Statement of investment deposits performance is a separate and supplementary financial statement that is designed with two objectives: 1. Improvement in the level of disclosure and accountability of the banks to the owners of investment deposits as the main providers of the banks’ resources, and 2. Implementation of the IFRS standards on banking business in Iran. In this paper, the principles g...
متن کامل