Lending with interest between Jews is a sin in the Old Testament, which should have gone away for non-Jewish Christians
According to Wikipedia, it was only proscribed by Christianity later; at first only applying to priests.
The First Council of Nicaea, in 325, forbade clergy from engaging in usury (canon 17). At the time, usury was interest of any kind, and the canon forbade the clergy to lend money at interest rates even as low as 1 percent per year. Later ecumenical councils applied this regulation to the laity.
Later on, usury became even more emphatically proscribed.
Lateran III decreed that persons who accepted interest on loans could receive neither the sacraments nor Christian burial. Pope Clement V made the belief in the right to usury a heresy in 1311, and abolished all secular legislation which allowed it. Pope Sixtus V condemned the practice of charging interest as "detestable to God and man, damned by the sacred canons and contrary to Christian charity."
Theological historian John Noonan argues that "the doctrine [of usury] was enunciated by popes, expressed by three ecumenical councils, proclaimed by bishops, and taught unanimously by theologians."
At what point did the official Catholic position on moneylending change and why? If the change happened after the Reformation, did Protestants have a separate reason?