Q&A: A Jewish Bank
A Jewish Bank
Question
Hello Rabbi,
There is currently an initiative to establish a Jewish bank. In short, this would be a bank that would not lend with interest for non-business needs, but only interest-free, after checking the borrower’s ability to repay. Loans for business purposes, where the bank can be viewed as a partner, would be given under a heter iska, with careful adherence to all its conditions. I am attaching a link to a somewhat more detailed explanation. In your opinion, is the gain worth the king’s damage? In other words: is the current halakhic situation in banks today inadequate, such that there is an obligation / commandment to move to this bank, if and when it is established?
https://www.bky.org.il/bank
Answer
It certainly doesn’t hurt. But in my opinion there are more important problems. In general, a bank deposit, in my view, is not a loan but a deposit, and therefore the question of interest on a positive balance there is not especially dramatic. With an overdraft, it is already more similar to a loan. Beyond that, a bank is a limited liability company, etc.