A Review of Shahid Sadr's Views on Bank Usury Based on the Legal Income Theory

The theory of legal income was proposed by Shahid Sadr in his book “Ightisādunā”. According to this theory “doing a work” is the source of earning a legal and legitimate income. Reviewing his views specifically in his book “Al-Bank Al-la Rabawi” shows that he has analyzed the issues related to the bank usury based on this theory. This article using a descriptive-analytical method shows that the model of banking without usury has been proposed by Shahid Sadr based on this theory. According to this theory every income earned through the bank must be in exchange for performing an act and superficial changes of the bank contracts and transactions, although they may make an income without usury and illegal profits, since it is not based on doing a work, is illegal and illegitimate. As a result, substituting a loan contract with a contract of sale, muzāriba, juʻālah, and things like this, as long as it does not end to a valuable economic act, will not be the license for making income, and taking or paying the profit and the income and the profit from that will be illegal and illegitimate since it is not based on performing an act.