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