ABSTRACT
The juridical meaning of riba (literally, an excess or increase) and its application in interest-free Islamic banking have always been controversial in contemporary Islamic public policy. The controversy is about the Quranic prohibition of riba and, to a lesser degree, its related Shari'a concept, gharar (literally, hazard). The practical side of this debate is the elimination of riba from financial transactions, and the establishment of a banking system based on legally recognized Islamic contracts.
