Rabu, 08 April 2009

Syaria Banking Vs Conventional

There are five factors that trigger the development of sharia banking in Indonesia, is the pembeda between sharia banks and conventional banks, namely:

  1. Market was considered to be knowledgeable not been the most (let alone, the bank sharia not only devoted to the Muslims because there are a number of bank customers nonmuslim),
  2. system for the best results compared to the more profitable system of the bank interest rate of the conventional (review at the time of economic crisis-monetary),
  3. a return given to the customer's bank syariah fund owners is much greater than conventional bank deposit interest rate (plus more recently, the interest rate of Bank Indonesia Certificates (SBI) continues to decrease, so that bank interest rates also decreased),
  4. Sharia bank does not provide a loan in the form of cash, but working together in partnership, such as principles for the results (mudharabah), principles of inclusion capital (musyarakah), principles of sale and purchase (murabahah), and the principle of rent (ijarah), and
  5. principles of Sharia bank profit is not the only goal for a Sharia bank to seek how to make funds available to build a welfare society (moreover, working under the Sharia bank supervision of the Board of Supervisors Sharia).
According Boesono (2007), there are at least three operational principles in Sharia bank different from the conventional banks, especially in service to the customer, which must be maintained by the bankers, namely:
  1. principles of justice, that is, the rewards on the basis of the results for profit margins and set up an agreement between banks and customers,
  2. principles of equality, ie, where the customer funds, the funds and bank users have a right, obligation, the burden of the risks and benefits of balanced, and
  3. principles of peace, that the bank follow the principles of Sharia and Islamic rule muamalah (free of usury and apply charity property).

Translated and adapted from Buletin Ekonomika dan Bisnis Islam issued by Economic Faculty Gadjah Mada University

Syaria Banking: The History

Implementation of the functions of the banking actually exists and has become a tradition
since the era of Rosulullah such as financing, property care, loans, borrow money, and even perform the function of money. However, at the time, of course, functions of the banking sector was still a simple and based on the needs of individual communities, so that has not been systematically organized.

In fact Islam has also had a fairly comprehensive rules about the laws in an economy, it can be extracted more in Al-Quran, Hadith, and books of the scholars. In fact, some of the terms that have a modern banking roots of the word fiqh knowledge. For example, the term credit (English: credit means trust; Roman: credo, which means trust, and Arabic: qard means lend money based on trust).

In addition, check the term (English: check; France: checks, Arabic: saq / suquq which means the market) - the term is known as a check payment tool that can be used in the markets.

History of the development of sharia banking can be seen in Table 1 (in the world) and Table 2 (in Indonesia).

The development of sharia banks in Indonesia in the world and still have problems because of Sharia bank present in the middle of the development and practices of conventional banking is that mengakar in the life of the community widely. Constraints faced by the banking sector (financial institutions) from the shari'a is not the availability of human resources adequately and regulations. Although, many studies have tried to simplify the explanation of the implementation of sharia banking operations.

This is considering that in each country, especially the majority Muslim population, does not have the infrastructure to support operations in sharia banking evenly. Konskuensi development in each country will certainly impact both directly and indirectly to the development of sharia banking in the world. Moreover, at the time this product was faster financial development.

Translated and adapted from Buletin Ekonomika dan Bisnis Islam issued by Economic Faculty Gadjah Mada University

Syaria Banking: Definition

Sharia Banking, or Islamic Bank, is one form of the national banking operations on the base Syariat (law) of Islam. According Schaik (2001), Bank Islam is a modern form of the bank based on Islamic law is legitimate, developed in the first century of Islam, using the concept of risk sharing as the main method, and negate the financial benefits and assistance, based on the previously determined.

Sudarsono (2004), Bank Syariah financial institutions is the main business of providing credit and other services in the traffic circulation and the payment of money to operate with the principles of sharia. Bank Syariah definition according to Muhammad (2002) in Donna (2006), is the financial institutions that operate with the flowers do not rely on the efforts to provide basic financial services and other traffic in the payment of money circulation and the operation in accordance with Islamic principles Syariat.

Schaik (2001) revealed that there are seven principles of Islamic economics
inspirit the syariah bank, namely:

  1. justice, solidarity and similarity;
  2. restrictions on the objects and beings;
  3. recognition of intellectual property;
  4. property should be used with the rational and the good (fair way);
  5. no income and no business obligation;
  6. general conditions of the credit (including, first, the borrower is experiencing financial difficulties should be treated well, given the time delay, will be even better if given a remission, and second, there are some differences in opinion on the legal difference between spot price and credit, that have yangberpendapat is the implicit interest rate and have also argued that the case is allowed to accommodate the cost of the transaction - not the cost of financing; and
  7. risk duality, on the one hand as part of the credit agreement (liability) business, which is productive for the legitimacy of the results, on the other hand the risk should be taken carefully, the risk that is not controlled should be avoided.

Taken and translated from Buletin Ekonomika dan Bisnis Islam issued by Economic Faculty Gadjah Mada University