What is wrong with the interest-based system?

Under the principles of Sharia, the presence of interest creates an inequitable relationship between two parties favouring one over the other; this imbalance can ultimately lead to wider negative social and economic implications, as has been seen in recent years with several major global banks failing.

This is why it is forbidden in the Qur'an as generating money from money is effortless and useless approach of making money, it instead encourages trade and investment.