Asalaamwalikum
I would like to know if it is permissible to work as a credit analyst at an investment bank. The Job entails reviewing companiy’s financial statements to analyze the risk levels of giving them a loan as well as ensuring clients are not in breach of covenants for loans already in place. Once the statements are analyzed a report is generated and presented to the banks credit commitee who then decides weather to grant the loan or not.
Jazakllah
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
According to the job description explained by yourself as a credit analyst at a bank, you play an integral role in the committee’s decision of approving an interest bearing loan. Hence, you will be directly involved in an interest bearing transaction.
Accordingly, it is not permissible to work as a credit analyst for an investment bank.[i]
And Allaah Ta’aala Knows Best
Muhammed Al-Ameen Bin Moulana Ismail Akoo
Student, Darul Iftaa
Newcastle; KZN, South Africa
Checked and Approved by,
Mufti Ebrahim Desai
الذين يأكلون الربا لا يقومون إلا كما يقوم الذي يتخبطه الشيطان من المس ذلك بأنهم قالوا إنما البيع مثل الربا وأحل الله البيع وحرم الربا.
Those who take ribā (usury or interest) will not stand but as stands the one whom the demon has driven crazy by his touch. That is because they have said: “Sale is but like ribā”, while Allah has permitted sale, and prohibited ribā. (Verse: 2:275)
يا أيها الذين آمنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين. فإن لم تفعلوا فأذنوا بحرب من الله ورسوله وإن تبتم فلكم رءوس أموالكم لا تظلمون ولا تظلمون.
O you who believe, fear Allah and give up what still remains of ribā, if you are believers. But if you do not (give it up), then listen to the declaration of war from Allah and His Messenger. However, If you repent, yours is your principal. Neither wrong, nor be wronged. (Verse: 2:278,279
ولا تعاونوا على الإثم والعدوان
And do not help each other in sin and aggression. (Verse: 5:2)
عن جابر قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء. (رواه مسلم)
Hazrath Jabir (Radhiyallahu Anhu) narrates that Nabi (Sallahu ‘Alaihi Wasallam) cursed those who are involved in usury; whether it is the person who is giving usury, receiving it, writing the transaction or witnessing it.