Islamic Banking
'Islamic Banking' or 'Islamic Banking' is a developed banking system based on sharia (law) of Islam. Operating system formation is based on the prohibition in Islamic religion to collect or borrow with interest or so-called usury and the prohibition of investment for businesses categorized as haram (ie business relating to the production of food / drink is haraam, efforts are un-Islamic media, etc. ), where this can not be guaranteed by the conventional banking system.
A. History
Islamic banking first appeared in Egypt without the frills of Islam, because of fears the regime in power at that time would see it as a fundamentalist movement. The leader of this pioneering effort Ahmad El Najjar, took the form of a savings bank based on profit sharing (profit sharing) in the town of Mit Ghamr in 1963. This experiment lasted until 1967, and it was already standing 9 banks with a similar concept in Egypt. These banks, which do not collect or receive interest, most businesses invest in trade and industry directly in the form of a partnership and share the profits with savers.
Still in the same country, in 1971, Nasir Social Bank was established and declared itself as an interest-free commercial bank. Although not mentioned in the deed of establishment of religion or references to the Islamic Shari'a. Islamic Development Bank (IDB) was established in 1974 and sponsored by the countries belonging to the Organization of Islamic Conference, although the major banks are inter-governmental bank aimed to provide funds for development projects in its member countries. IDB provides fee-based financial services and profit-sharing for these countries and explicitly declare themselves, based on Islamic sharia.
Still in the same country, in 1971, Nasir Social Bank was established and declared itself as an interest-free commercial bank. Although not mentioned in the deed of establishment of religion or references to the Islamic Shari'a. Islamic Development Bank (IDB) was established in 1974 and sponsored by the countries belonging to the Organization of Islamic Conference, although the major banks are inter-governmental bank aimed to provide funds for development projects in its member countries. IDB provides fee-based financial services and profit-sharing for these countries and explicitly declare themselves, based on Islamic sharia.
In other countries in the period of the 1970s, a number of Islam-based bank then appear. In the Middle East, among others, stood Dubai Islamic Bank (1975), Faisal Islamic Bank of Sudan (1977), Faisal Islamic Bank of Egypt (1977) and Bahrain Islamic Bank (1979). She Asia-Pacific, Phillipine Amanah Bank was founded in 1973 by presidential decree, and in Malaysia in 1983 stood Muslim Pilgrims Savings Corporation that aims to help those who want to save money for pilgrimage [[pilgrimage].
In Indonesia, the pioneer of Islamic banking is the Bank Muamalat Indonesia. Established in 1991, the bank was initiated by the Indonesian Ulema Council (MUI) and the government and support from the Association of Indonesian Muslim Intellectuals (ICMI) and several Muslim businessmen. This bank was affected by the monetary crisis in the late 90s that left only a third of its equity capital. IDB then give an injection of funds to these banks and in the period 1999-2002 to rise and generate profit. [1]. Currently, the existence of Islamic banks in Indonesia have been arranged in the Law of Law. 10 of 1998 on the Amendment Law. 7 year 1992.
In Indonesia, the pioneer of Islamic banking is the Bank Muamalat Indonesia. Established in 1991, the bank was initiated by the Indonesian Ulema Council (MUI) and the government and support from the Association of Indonesian Muslim Intellectuals (ICMI) and several Muslim businessmen. This bank was affected by the monetary crisis in the late 90s that left only a third of its equity capital. IDB then give an injection of funds to these banks and in the period 1999-2002 to rise and generate profit. [1]. Currently, the existence of Islamic banks in Indonesia have been arranged in the Law of Law. 10 of 1998 on the Amendment Law. 7 year 1992.
Until the year 2007 there are 3 institutions of Islamic banks in Indonesia, Bank Muamalat Indonesia, Bank Syariah Mandiri and Bank Syariah Mega. Meanwhile, commercial banks have sharia business unit is among 19 banks are large banks such as Bank Negara Indonesia (Persero), Bank Rakyat Indonesia (Persero) and the National Private Bank: The National Pension Savings Bank (PT). Islamic system has also been used by the Rural Bank is now developing 104 BPRS. B. The principle of Islamic banking
The principle is the rule of sharia Islamic law based on agreement between the bank and other parties for the storage of funds and / or financing activities or other activities in accordance with sharia.
Some of the principles or laws adopted by the Islamic banking system, among others:
a. Payment of loans with different values of the loan value with a predetermined value is not allowed. b. Funders must also share the profits and losses as a result of the business institutions that borrow funds. c. Islam does not allow the "making money from money." Money is only a medium of exchange and not a commodity because it has no intrinsic value. d. Elements Gharar (uncertainty, speculation) is not allowed. Both parties should know with good results they will get from a transaction. e. Investments should only be given to efforts that are not forbidden in Islam. Such liquor business should not be funded by Islamic banking.
C. Islamic banking products
Some products services provided by the sharia-based banks, among others:
1. Services to the borrowers of funds.
Some products services provided by the sharia-based banks, among others:
1. Services to the borrowers of funds.
Among others:
a. Mudhorobah, is agreement between provider of capital to entrepreneurs. Any advantage gained will be divided according to specific ratios agreed. The risk of loss will be filled by the Bank except for losses caused by management errors, omissions and irregularities such as fraud-party customers, fraud and abuse. b. Musyarokah (Joint Venture), this concept is applied to the model of a partnership or joint venture. Benefits achieved will be shared in an agreed ratio while losses will be divided based on the ratio of equity owned by each party. The fundamental difference with mudaraba is in this concept of management intervention mudaraba management while there is no interference. c. Murobahah, namely the distribution of funds in the form of buying and selling. The Bank will buy goods from the seller and then sell it back to service users with the elevated prices as profit margins are defined banks, and service users can move the goods. The installment contract early and flats suitable amount of installment = cost price plus an agreed margin. Examples: house prices, 500 million, the bank margin / profit banks 100 jt, so that borrowers pay is 600 million and be paid over an agreed period beginning between the Bank and the Customer. d. Takaful (Islamic insurance)
2.Jasa to depositors.
Among others:
a. Wadi'ah (care services), is a custodial service where Care fund to collect funds at any time. With the system wadiah Bank has no obligation, but allowed, to give a bonus to customers. b. Mudhorobah deposit, customers save money in the bank within a certain period of time. Gain from investment of customer funds by the banks will be distributed between banks and customers with revenue sharing certain.
Among others:
a. Wadi'ah (care services), is a custodial service where Care fund to collect funds at any time. With the system wadiah Bank has no obligation, but allowed, to give a bonus to customers. b. Mudhorobah deposit, customers save money in the bank within a certain period of time. Gain from investment of customer funds by the banks will be distributed between banks and customers with revenue sharing certain.
C. The principle of Islamic banking principles is the rule of sharia Islamic law based on agreement between the bank and other parties for the storage of funds and / or financing activities or other activities in accordance with sharia.
Some of the principles or laws adopted by the Islamic banking system, among others: a. Payment of loans with different values of the loan value with a predetermined value is not allowed. b. Funders must also share the profits and losses as a result of the business institutions that borrow funds. c. Islam does not allow the "making money from money." Money is only a medium of exchange and not a commodity because it has no intrinsic value. d. Elements Gharar (uncertainty, speculation) is not allowed. Both parties should know with good results they will get from a transaction. e. Investments should only be given to efforts that are not forbidden in Islam. Such liquor business should not be funded by Islamic banking. The principle of Islamic banking will ultimately bring benefit to the people by promising the balance of economic systems [1].
Some of the principles or laws adopted by the Islamic banking system, among others: a. Payment of loans with different values of the loan value with a predetermined value is not allowed. b. Funders must also share the profits and losses as a result of the business institutions that borrow funds. c. Islam does not allow the "making money from money." Money is only a medium of exchange and not a commodity because it has no intrinsic value. d. Elements Gharar (uncertainty, speculation) is not allowed. Both parties should know with good results they will get from a transaction. e. Investments should only be given to efforts that are not forbidden in Islam. Such liquor business should not be funded by Islamic banking. The principle of Islamic banking will ultimately bring benefit to the people by promising the balance of economic systems [1].
Comments: This is unfortunate because the lack of knowledge about these principles so that there are still many people who feel less confident and less easy to use facilities located in Bank Syariah principles. In perbankaqn shari'ah has arranged various kinds of transactions that are detrimental to both parties. Because if you let anyone hurt and harmed then it violates the teachings of Islam itself. The principle of shariah banking itself derived from the Quran and Hadith.
Table of contents
• 1 Product Islamic banking
1.1 Services to the borrowers of funds
1.2 Services for depositors
1.3 Glossary of Islamic Banking Islamic Economics or
• 2 Challenge Fund Management
1. Product Islamic banking
Some products services provided by the sharia-based banks, among others:
Some products services provided by the sharia-based banks, among others:
1.1 Services to the borrowers of funds
• Mudhorobah, is agreement between provider of capital to entrepreneurs. Any advantage gained will be divided according to specific ratios agreed. The risk of loss will be filled by the Bank except for losses caused by management errors, omissions and irregularities such as fraud-party customers, fraud and abuse.
• Musyarokah (Joint Venture), this concept is applied to the model of a partnership or joint venture. Benefits achieved will be shared in an agreed ratio while losses will be divided based on the ratio of equity owned by each party. The fundamental difference with mudaraba is in this concept of management intervention mudaraba management while there was no interference
• Murobahah, namely the distribution of funds in the form of buying and selling. The Bank will buy goods from the seller and then sell it back to service users with the elevated prices as profit margins are defined banks, and service users can move the goods. The installment contract early and flats suitable amount of installment = cost price plus an agreed margin. Examples: house prices, 500 million, the bank margin / profit banks 100 jt, so that borrowers pay is 600 million and be paid over an agreed period beginning between the Bank and the Customer. (Islamic insurance)
1.2 Services to depositors
• wadi'ah (care services), is a custodial service where Care fund to collect funds at any time. With the system wadiah Bank has no obligation, but allowed, to give a bonus to customers. Bank Muamalat Indonesia-Shahibul Maal.
• Deposit Mudhorobah, customers save money in the bank within a certain period of time. Gain from investment of customer funds by the banks will be distributed between banks and customers with revenue sharing certain.
1.3 Economics Glossary of Islamic or Sharia Banking
1.3 Economics Glossary of Islamic or Sharia Banking
The following are among the lists terms of Islamic Economics and Islamic banking and its definition.
Ar-Rahnu
Is to make goods that have a property value (economic value) as collateral for loans, to the owner of the goods in question may take a loan. Ar-Rahn is also the pledge or pawn (pawn), the contract or contract underwriting and binding when the right to possession of the collateral goods change hands. In contract, there is no transfer of ownership of the collateral. Or in other words, a contract delivery of goods from the customer to the bank as collateral for loans partially or wholly owned by the customer. Thus, the transfer of ownership of the goods only occur under certain conditions as an effect or a result of the contract.
Is to make goods that have a property value (economic value) as collateral for loans, to the owner of the goods in question may take a loan. Ar-Rahn is also the pledge or pawn (pawn), the contract or contract underwriting and binding when the right to possession of the collateral goods change hands. In contract, there is no transfer of ownership of the collateral. Or in other words, a contract delivery of goods from the customer to the bank as collateral for loans partially or wholly owned by the customer. Thus, the transfer of ownership of the goods only occur under certain conditions as an effect or a result of the contract.
Hawalah
Is the transfer of customers to the bank contract to help customers get the cash capital for banks to resume production and get a return for the transfer of the receivables.
Is the transfer of customers to the bank contract to help customers get the cash capital for banks to resume production and get a return for the transfer of the receivables.
Ijarah
The lease agreement that gives the tenant to take advantage of items to be rented in exchange for the rent in accordance with the agreement and after the rental period ends, the item is returned to the owners, but tenants can also have goods leased with the option of transfer of ownership of the goods leased from the bank by others (Ijarah wa iqtina).
The lease agreement that gives the tenant to take advantage of items to be rented in exchange for the rent in accordance with the agreement and after the rental period ends, the item is returned to the owners, but tenants can also have goods leased with the option of transfer of ownership of the goods leased from the bank by others (Ijarah wa iqtina).
Istishna
Financing the sale and purchase is done between banks and customers in which the seller (the bank) makes goods ordered by customers. Bank to fulfill customer orders can mensubkan work to other parties.
Financing the sale and purchase is done between banks and customers in which the seller (the bank) makes goods ordered by customers. Bank to fulfill customer orders can mensubkan work to other parties.
Kafalah
Is an agreement granting the warranty / guarantee by the bank to customers to ensure project implementation and fulfillment of certain obligations by the secured party.
Is an agreement granting the warranty / guarantee by the bank to customers to ensure project implementation and fulfillment of certain obligations by the secured party.
Mudharabah
Is cooperation between two parties where Shahibul maal providing capital to the fund manager while mudharib where gains and losses are shared according to agreement in advance.
Is cooperation between two parties where Shahibul maal providing capital to the fund manager while mudharib where gains and losses are shared according to agreement in advance.
Mudharabah al-Mutlaqah
Is cooperation between two parties where Shahibul maal provides the capital and give full authority to mudharib in determining the type and place of investment, while gains and losses are divided according to agreement in advance.
Is cooperation between two parties where Shahibul maal provides the capital and give full authority to mudharib in determining the type and place of investment, while gains and losses are divided according to agreement in advance.
Mudharabah Muqqayadah
Is a collaboration between two parties where Shahibul maal provides the capital and provide limited authority to mudharib in determining the type and place of investment, where the gains and losses are divided according to agreement in advance.
Mudharib
It is the second party or parties other than the first.
It is the second party or parties other than the first.
Murabaha
It is a treaty agreed between the Islamic bank with a customer, which the Bank provides financing for the purchase of raw materials or other working capital required by customers, which will be repaid by the customer at the bank selling price (purchase price + bank profit margins) at the set time.
Musharaka
Is a financing agreement between the Islamic Bank with customers who need financing, where the Bank and the customer jointly finance a business or project that is also managed with the principle of profit sharing in accordance with the investment in which gains and losses are shared according to agreement in advance.
Is a financing agreement between the Islamic Bank with customers who need financing, where the Bank and the customer jointly finance a business or project that is also managed with the principle of profit sharing in accordance with the investment in which gains and losses are shared according to agreement in advance.
Ratio
It is part of business profits for each party based on a consensus.
It is part of business profits for each party based on a consensus.
Greeting
Is the buying and selling financing where the buyer gives the money in advance for goods purchased with the specifications mentioned later delivery.
Is the buying and selling financing where the buyer gives the money in advance for goods purchased with the specifications mentioned later delivery.
Shahibul Maal
It is the first party.
It is the first party.
Wadiah
Is deposited from one party to another party either individual or group that should be preserved and restored at any time if the owner wishes. It is the first party.
Is deposited from one party to another party either individual or group that should be preserved and restored at any time if the owner wishes. It is the first party.
ADH-Wadiah Yad Dhamanah
Wadiah where the recipient is entrusted to take advantage of the goods entrusted it with the consent of the owner and to return the deposit guarantee is in full all the time, when the owner wishes.
Wadiah Yad al-Amanah
Wadiah where the recipient is a surrogate is not responsible for loss and damage to the goods entrusted for this is not the result of negligence or carelessness in maintaining the recipient deposit the deposit.
Wadiah where the recipient is a surrogate is not responsible for loss and damage to the goods entrusted for this is not the result of negligence or carelessness in maintaining the recipient deposit the deposit.
Wakalah
Representation is an agreement between two parties (bank and customer) where the customer authorizes the bank to represent him do the work or services.
Representation is an agreement between two parties (bank and customer) where the customer authorizes the bank to represent him do the work or services.
2. The Challenge Fund Management
The rate of growth of Islamic banking on a global level without a doubt. Assets of Islamic financial institutions in the world is estimated to reach 250 billion U.S. dollars, growing an average of more than 15 percent per year. In Indonesia, Islamic banking business volume during the last five years grew on average 60 percent per year. In 2005, Indonesian Islamic banking book profit of Rp 238.6 billion, up 47 percent from a year earlier. Even so, Indonesia has a very large market potential for Islamic banking, still lags far behind Malaysia.
Last year, the Malaysian Islamic banking profit print more than one billion ringgit (272 million U.S. dollars). End of March 2006, Islamic banking assets in this neighboring country almost as high as 12 percent of the total assets of national banks. While in Indonesia, Islamic banking assets in March 2006 a new period recorded 1.40 percent of total banking assets. Bank Indonesia predicts, accelerated growth of Islamic banking in Indonesia will start this year.
Implementation of the policy office channeling, support the government in the form of account management akseleratif pilgrims who will be entrusted on Islamic banking, as well as the presence of new investors will encourage the growth of Islamic finance. Islamic banking consultant, Adiwarman Azwar Karim, argued, the development of Islamic banking, among others, will be marked issuance of Sharia-compliant bonds, or sukuk, which prepared the government.
A number of foreign banks in Indonesia, such as Citibank and HSBC, and even preparing to welcome the issuance of sukuk to open a business unit of sharia. Meanwhile, a number of investors from the Gulf countries are also preparing to buy banks in Indonesia to be converted into Islamic banks. The criteria selected banks with assets generally relatively small, ranging from Rp 500 billion and Rp 2 trillion. Once converted, the banks sought to syndicate financing large projects, involving a global financial institution.
The existence of Islamic banking in Indonesia was pioneered by the establishment of Bank Muamalat Indonesia, initiated by the Indonesian Ulema Council (MUI) in order to accommodate the aspirations and opinions in Islamic society have a lot of the opinion that it is haraam because the bank interest, including usury and also to take the precautionary principle attention. When viewed in terms of economic and business value, this represents a major breakthrough because of Indonesia's population of 80% Moslem, of course, is a business with huge potential. Although some people argue that Islamic bank interest was not usurious but avail, because the interest is granted or taken by the bank are small so it will not be harmed or didzolimi each other, but still, for the people of Islam establishment of Islamic banks is huge progress.
But the Islamic banking system in Indonesia is still not perfect or still a weakness that is still berinduk at Bank Indonesia, the Indonesian government ideally set up specialized financial institution at the same level Islamic Bank Indonesia Bank Indonesia Sharia.
Basic Principles of Islamic Banking Products
Although Indonesia as a country with the largest Islamic religions, Islamic principled new financial products known to a few years ago and is still very limited. Starting from the banking sector, with the establishment of Bank Muamalat in November 1991. Islamic principles are not only limited to the banking context, but also includes various economic activities and investments, including in the capital markets and insurance.
You would never hear the term Islamic banks, or, more broadly based economy sharia. Even perhaps, many of you who already use the services of Islamic financial institutions. Some of you there who think Islamic banks only for the Muslim community. Whether this is so, Islamic banks is intended only for the Muslims alone?
Sorry, you are wrong if think like that.
Bank Syariah actually applies to all persons or Universal. Sharia itself is just a principle or system in accordance with the rules or the teachings of Islam. Anyone can use financial services of Islamic banks.
When the monetary crisis hit Indonesia in mid 1997, the Islamic system has benefited many people. Surely you remember, at that time, interest rates soar to tens of percent. As a result, a lot of businesses who can not afford. But this phenomenon does not apply to businesses that use funds from Islamic banks. Employers are not required to pay interest up to tens of percent, they simply share the results with Islamic banks. Determination of the percentage for the decision made at the beginning of the loan.
Basic Principles
The principle of a deposit or simpananâ € "Al-Wadia € ™ ah Al-Wadia € ™ ah can be interpreted as a pure deposit of one party to another party, whether individual or legal entity, which must be preserved and restored whenever the
Care wills.
Application in banking products, in which the savings bank as receiver to take advantage of this principle which is known in conventional banks with demand deposits. As a consequence, all profits generated from the funds deposited into a bank owned (and vice versa). In return, the depositor gets security guarantees against property, as well as other current account facilities.
In an increasingly competitive banking world, incentives or bonuses may be granted and this became the policy of the bank concerned. This is done in an effort to stimulate the spirit of community in saving as well as indicators of bank health.
Giving bonuses is not prohibited by the note was not required previously, and the amount is not specified in nominal or percentage in advance, but it really is a bank policy.
The principle of profit sharing (profit-sharing)
The principle of profit sharing (profit-sharing)
Al-Mudharabah
Technically, al-mudaraba is a business cooperation contract between two parties, where the first party providing the full (100 percent) in capital, while others become managers. Business profits are divided according to the agreement mudaraba as outlined in the contract, whereas if the loss, borne by capital owners during the loss is not due to negligence on the manager. If the losses due to fraud or negligence caused the manager, the manager should be responsible for the losses.
Technically, al-mudaraba is a business cooperation contract between two parties, where the first party providing the full (100 percent) in capital, while others become managers. Business profits are divided according to the agreement mudaraba as outlined in the contract, whereas if the loss, borne by capital owners during the loss is not due to negligence on the manager. If the losses due to fraud or negligence caused the manager, the manager should be responsible for the losses.
Mudaraba transaction patterns, typically applied to financial products and financing. On the funding side, al-mudaraba applied to: savings and time deposits. While on the financing side, al-mudaraba, applied for: working capital financing.
By placing funds in principle al-mudaraba, owner of the funds not earning interest like in conventional banks, but the ratio of the profits. In practice, the ratio for savings ranging from 55 â € "56 percent of the investments made by banks. In the case of conventional banks, the figures were roughly equivalent to 11-12 percent.
By placing funds in principle al-mudaraba, owner of the funds not earning interest like in conventional banks, but the ratio of the profits. In practice, the ratio for savings ranging from 55 â € "56 percent of the investments made by banks. In the case of conventional banks, the figures were roughly equivalent to 11-12 percent.
While the financing side, if a trader needs capital to trade then can apply for financing for a result like al-mudaraba. You do this by first calculating the estimated revenue to be gained by customers from the project. For example, from Rp.30 million capital income obtained Rp 5 million / month. Of these revenues should be set aside in advance to savings payback, call it Rp.2 million. the rest is divided between the bank and the customer with an agreement in advance, for example 60 percent for customers and 40 percent for banks.
Al-Musharaka
In this system there cooperation between two or more parties to a particular business. The parties are working together to contribute capital. Profits or business risks will be shared in accordance with the agreement.
In this system there cooperation between two or more parties to a particular business. The parties are working together to contribute capital. Profits or business risks will be shared in accordance with the agreement.
In this system, contained what is commonly referred to in conventional banks as a means of financing. In concrete terms, if you have a business and want to obtain additional capital, you can use this product al-Musharaka. The core of this pattern is, Islamic banks and you jointly contribute capital that is then used to run the business. The portion of Islamic bank will be treated as investments with an agreed profit sharing. In a conventional bank, such financing is similar to working capital loans.
The principle of Al-Murabaha
In this scheme, there was a sale and purchase of goods at the original price with the added advantage that the value agreed upon by both parties. The seller in this case should tell that he bought the product price and determine a level of profit as an extra. Suppose you need a loan to purchase a car. In a conventional bank you will be charged interest and you are required to pay monthly installments for a certain time. In the banking sector, interest rates may change.
In this scheme, there was a sale and purchase of goods at the original price with the added advantage that the value agreed upon by both parties. The seller in this case should tell that he bought the product price and determine a level of profit as an extra. Suppose you need a loan to purchase a car. In a conventional bank you will be charged interest and you are required to pay monthly installments for a certain time. In the banking sector, interest rates may change.
In the Islamic banking system, of course, such products are also available. But its not a credit, but use the principle of sale, which is termed the Murabahah. In this regard, Islamic banks will buy the car you want first, then sell it to you. But, because the first Islamic bank bail, so when it sells to you, it costs a little more expensive, as a form of profit for Islamic banks. Because of the advantage of Islamic banks had agreed in front, then the value of mortgage that you pay relatively more permanent.
Of course there are many more Islamic banking principles, which we described above are the basic principles are commonly known in the Islamic banking.
Differences Islamic Bank
At a glance when viewed technically, saving money in Islamic banks with conventional banks present there is almost no difference. This is because, both in Islamic banks and conventional banks are required to follow the technical rules of banking in general. However, when observed more in, there are some fundamental differences between them.
The first difference lies in akadnya. In Islamic banking, all transactions should be based on the contract which is justified by the sharia. Thus, all transactions must follow the rules and regulations that apply on-contract agreement muamalah sharia. In conventional banking, account opening transaction, whether current, savings or time deposit, deposit agreement, but the principle is not deposited in accordance with Islamic rules, for example Wadia € ™ ah, because of demand deposits, savings and time deposits, is paying a fixed rate against the money paid.
At a glance when viewed technically, saving money in Islamic banks with conventional banks present there is almost no difference. This is because, both in Islamic banks and conventional banks are required to follow the technical rules of banking in general. However, when observed more in, there are some fundamental differences between them.
The first difference lies in akadnya. In Islamic banking, all transactions should be based on the contract which is justified by the sharia. Thus, all transactions must follow the rules and regulations that apply on-contract agreement muamalah sharia. In conventional banking, account opening transaction, whether current, savings or time deposit, deposit agreement, but the principle is not deposited in accordance with Islamic rules, for example Wadia € ™ ah, because of demand deposits, savings and time deposits, is paying a fixed rate against the money paid.
The second difference found on the benefits granted. Conventional banks use the concept of cost (cost concept) to calculate profits. That is, the promised interest rate on advances to customers is a cost saver or fees payable by the bank. Therefore, banks should œmenjualâ € â €? other customers (borrowers) with higher interest costs. The difference between them is called spread that indicates whether the company's profit or loss. If the spread is positive, where interest expense is charged to borrowers is higher than the interest given to the depositors, it can be said that the bank make a profit. Opposite is also true.
Meanwhile, Islamic banks use the profit-sharing approach, meaning that the bank received the funds disbursed to the financing. The benefits of financing is divided in two, to banks and to customers, based on profit sharing agreements in advance.
The third difference is the target of credit / financing. The depositors in the conventional banks do not consciously saved money lent to various businesses, regardless of halal-haram business.
The third difference is the target of credit / financing. The depositors in the conventional banks do not consciously saved money lent to various businesses, regardless of halal-haram business.
While in Islamic banks, and deposits from the public distribution is limited by basic principles, namely principles of sharia means that the granting of loans should not be to such illicit business, gambling, drinks are forbidden, pornography and other businesses that are not in accordance with sharia.
Thus our review this time around perbanak Islamic products. Hopefully this review can increase the knowledge and alternative means of investasi.