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2021 | OriginalPaper | Chapter

4. Financial Institutions: Interest, Power and Moral Justifications

Authors : Balihar Sanghera, Elmira Satybaldieva

Published in: Rentier Capitalism and Its Discontents

Publisher: Springer International Publishing

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Abstract

This chapter critically examines how banks and microfinance institutions justified their lending practices and income from interest in Kazakhstan and Kyrgyzstan. The lenders’ myths, norms, discourses and obligations were central in legitimising and depoliticising the unequal social relationship between lenders and borrowers. Financial relations were particularly important in neoliberal economies, because they expanded rentierism beyond the traditional forms of rent-seeking in real estate and natural resources. The chapter also evaluates two alternative forms of allocating credit (Islamic finance and a state-owned development fund) that aimed to minimise usury and finance productive investment.

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previous chapter Moral Economy, the State and Social Movements
next chapter Property Development: Improperty, Plutocracy and Criminogency
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Metadata
Title
Financial Institutions: Interest, Power and Moral Justifications
Authors
Balihar Sanghera
Elmira Satybaldieva
Copyright Year
2021
Book
Rentier Capitalism and Its Discontents

Print ISBN: 978-3-030-76302-2

Electronic ISBN: 978-3-030-76303-9

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-3-030-76303-9_4