Stock Lending Program at a Bank

Is it halachically permissible to join a stock lending program at a bank?

As part of the program, I agree to lend my shares to the bank. The bank may lend them to clients who want to short them (a short sale of a stock), or use them itself. In return, I receive a fee or interest.

According to the terms, during the lending period my right changes from direct ownership of the security to a contractual right to receive it back from the bank. The transactions are carried out solely with the bank, and if the bank is unable to buy back the securities, it will pay me their market value in money. At the end of the lending period, the bank is supposed to return to me securities of the same type and in the same quantity.

Is the payment I receive considered interest that is forbidden according to halacha? And is it permissible to participate in such a program?

The full terms: https://www.discountbank.co.il/media/rmyp4gx3/faame-agreement-18826-new-nagish.pdf

Shalom u’vracha 

According to halacha, this is not a “loan” but rather a “sale,” since during the “lending” period you are not the owner of the shares. 

Your business arrangement with the bank requires a heter iska, since they are paying interest on their debt to you. 

The transactions carried out by the buyers, or that the bank carries out with the buyers, are not your halachic responsibility, since at the time of the transaction between them you are not the owner of the shares. 

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