Is Working at a Development Bank Permissible in Islam?

Answered by Mawlana Ilyas Patel

Question

On SeekersGuidance, it was stated that income from working at a development bank might be permissible, provided it is not interest-related. Another answer states that the source of funds for bank employees matters for permissibility; I’m unsure if this applies to development banks, which don’t hold depositor funds like conventional banks.

I know someone working at a development bank helping countries improve accounting systems, which seems unrelated to riba. But is it haram because of the bank’s income sources?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

I pray you are in good faith and health. Thank you for your question.

If your job at the development bank is only to improve the accounting systems, and not tied to riba contracts, nor facilitating interest transactions directly, nor documenting or calculating riba, then it is permissible.

Development Banks v Commercial Banks

Development banks are distinct from commercial banks. Although they do not accept retail deposits, they are funded by governments, institutions, or capital subscriptions and focus on development projects, technical assistance, infrastructure, and accounting reforms.

What Permissibility of Work Depends Upon

The permissibility of your work depends on two factors: (a) the work you yourself do is permissible, and (b) it has permissible primary uses.

Beyond that, you’re not sinful nor considered “assisting in sin” if the customers of the company you work for use it in impermissible ways.

The Divine Prohibition, “Do not assist one another in sin and enmity,” [Qur’an, 5:2] is understood to prohibit direct assistance. [Ibn al-Humam, Fath al-Qadir Sharh al-Hidaya; Usmani, Fiqh al-Buyu‘]

And Allah knows best.

[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani

Mawlana Ilyas Patel has received a traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Currently, he resides in the UK with his wife and is interested in reading and gardening.