[Avodah] Mechezei keRibbis

[David E Cohen]

R' Zev Sero wrote:
> AIUI, Mechzei Keribbis means that an outside observer who is
> fully aware of all the details of the transaction, but can't
> read the minds of the parties, can't distinguish this from a
> loan.  In the case of an iska, there is a contract setting
> out the terms, which are very different from that of a loan.

My experience banking in Israel (with presumably Jewish-owned banks), both
when taking out a mortgage and depositing money in an interest-bearing
account, has been that you sign all sorts of documents referring explicitly
to the "ribbit" that will be paid on the deposit or loan.  Somewhere hanging
on the wall, if you know where to look, you can find a document stating
simply that "all transactions in the bank are performed under the terms of a
hetter `iska."

I know that gedolim vetovim mimmeni use these banks, so I have not resorted
to keeping my money under my mattress or saving for 20 years before buying a
home, but I would appreciate a better understanding of how this is okay.

--D.C.