The 60-Second Aquinas
Lesson
Usury and the Banking Industry
September 17, 1998
So, was Aquinas totally off base to consider the charging of interest a sin? No.
Aquinas recognized that there might sometimes be a reason to ask for more than was lent: "Somebody is within his rights to settle terms of compensation for the loss of any advantage which he is entitled to enjoy, for this does not amount to the selling the use of money, but is a question of avoiding loss" (ST II-II, Q. 78, Art. 2).
If we simplify the banking process, we can see how this applies. Let’s say Mr. Smith is a banker who loans me money to purchase a new car. He charges me a fair rate of interest – say 7 percent. Rather than consider interest as his income, we could view it as his recovery of a loss.
If Mr. Smith did not loan me the money, he could use that money to buy a car for himself or to provide for his family.
Furthermore, today we recognize that my ability to receive a loan for the benefit of my family or myself is a means toward equality. We also recognize that we cannot expect others to provide this service without recovering any possible loss to themselves or their families.
Explanation of The 60-Second Aquinas Lesson
