The abstinence theory of interest asserts that the money used for lending purposes is the money not used for consumption – which means, earning interest by abstaining from spending makes the funds possible and available for borrowers.
The originator of the theory is Nassau William Senior.
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Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.