ISLAMIC BANKING

Islamic banking or Islamic banking is a banking system that was developed based on the sharia (law) of Islam. Operating system formation is constituted by the prohibition in Islamic religion to pick up or borrow with interest or so-called ban on usury and investment for businesses categorized as haram (ie business relating to the production of food / drink unlawful, un-Islamic media business etc. ), where this can not be guaranteed by the conventional banking system.

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 pioneering effort, led by 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 then it was up nine 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 partnership and divide the profits earned by 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 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 bank is the main intergovernmental bank aims 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.

Dibelahan other countries in that period of the 1970s, a number of Islam-based bank then appeared. 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). He Asia-Pacific Philippine Amanah Bank was founded in 1973 by presidential decree, and in Malaysia in 1983 stood Muslim Pilgrims Savings Corporation, which aims to help those who want to save in order to perform the 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 government and support from the Association of Indonesian Muslim Intellectuals (ICMI) and several Muslim businessmen. This bank had negatively affected by the monetary crisis in the late '90s that left only a third of its equity capital. IDB and then give an injection of funds to these banks and in the period 1999-2002 can be up and generating profits. [1]. We have the existence of sharia banks in Indonesia have been set in the Law of Law. 10 years on the amendment of Act No. 1998. 7 year 1992 about banking.

Until the year 2007 there are three institutions of Islamic bank in Indonesia, including Bank Muamalat Indonesia, Bank Syariah Mandiri and Bank Syariah Mega. Meanwhile, commercial banks have sharia business unit is among 19 banks are large banks like Bank Negara Indonesia (Persero), Bank Rakyat Indonesia (Persero) and the national private banking sector: the National Pension Savings Bank (PT).

Sharia system has also been used by rural banks, has now developed 104 BPRS. [Edit] Principles of Islamic banking

The principle is the rule of sharia Islamic law based on agreement between the bank and another party for safekeeping of funds and / or financing activities or other activities in accordance with sharia.

Some principles / laws adopted by the Islamic banking system, among others

Payment of loans with different values of the loan value with the predetermined value is not allowed.

Funders must also share the profits and losses as a result of the business institutions that borrow funds.

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.

Elements gharar (uncertainty, speculation) is not allowed. Both parties must know all too well the results of which will they gain from a transaction.

Investments should only be given to those businesses which are not forbidden in Islam. Liquor business for example can not be funded by Islamic banking.


Islamic banking principles
The principle is the rule of sharia Islamic law based on agreement between the bank and another party for safekeeping of funds and / or financing activities or other activities in accordance with sharia.

Some principles / laws adopted by the Islamic banking system, among others

Payment of loans with different values of the loan value with the predetermined value is not allowed.

Funders must also share the profits and losses as a result of the business institutions that borrow funds.

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.

Elements gharar (uncertainty, speculation) is not allowed. Both parties must know all too well the results of which will they gain from a transaction.

Investments should only be given to those businesses which are not forbidden in Islam. Liquor business for example can not be funded by Islamic banking.


Islamic banking principles will ultimately bring benefit to the people because it promises to balance its economic system

Comments: This is unfortunate because the lack of knowledge about these principles so that there are still many people who feel less secure and less easy to use the facilities contained in Bank Syariah principles. In perbankaqn Shariah has arranged various kinds of transactions that are not harmful for both parties. Because if you let anyone harmed and harmed then it violates the teachings of Islam itself. Shariah banking principles is itself derived from the Quran and Hadith.


Islamic banking products
Services to the borrower of funds
Mudhorobah, is an agreement between the provider of capital to entrepreneurs. Any gains achieved will be divided according to specific ratios agreed upon. Risk of loss will be filled by the Bank except for losses caused by mismanagement, negligence and abuse of party customers such as misappropriation, fraud and abuse.
Musyarokah (Joint Venture), this concept is applied to the model of a partnership or joint venture. The advantage gained 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 there is in this concept, while its management management intervention mudaraba no interference.
Murobahah, namely the distribution of funds in the form of buying and selling. Banks will be required to buy goods and then resells the service user to service users in accordance with price elevated banks set profit margins, and users can pay in goods. The installment contract, the flat line early and the amount of installment = cost of goods plus an agreed margin. Examples: house prices, 500 million, the margin of the bank / bank profits jt 100, customers paid the borrower is 600 million and be paid over an agreed period beginning between the Bank and the Customer.
Takaful (Islamic insurance)

Services for storage fund
Wadiah (care services), is the custody of Care funds which can take those funds at any time. With the system of bank deposits are not obligated, but allowed, to give a bonus to customers.

Mudhorobah deposits, customers save money in the bank within a certain period of time. Gains from investments of funds by bank customers will be shared between the bank and its customers with a specific revenue sharing.


The Challenge Fund Management
The growth rate of Islamic banking at the global level no doubt. Asset Islamic financial institutions in the world is estimated to reach 250 billion U.S. dollars, grew by an average of more than 15 percent per year. In Indonesia, the Islamic banking business volume during the last five years grew an average of 60 percent per year. In 2005, the Indonesian Sharia banking book profit of Rp 238.6 billion, up 47 percent from a year earlier. Even so, Indonesia has a vast market potential for Islamic banking, still lags far behind Malaysia.

Last year, Malaysia's Islamic banking profit to print more than one billion ringgit (272 million U.S. dollars). End of March 2006, Islamic banking assets in this neighbor country of almost 12 percent of the total assets of national banks. While in Indonesia, Islamic banking assets in March 2006 a new period was recorded 1.40 percent of total banking assets. Bank Indonesia predicted, the accelerated growth of Islamic banking in Indonesia will begin this year.

Implementation of the policy office channeling, accelerating government support in the form of pilgrims who will be managing accounts entrusted to Islamic banking, as well as the presence of new investors will encourage the growth of sharia business. Islamic banking consultant, Adiwarman Azwar Karim, argued, the development of Islamic banking, among others, will be marked on sharia bonds, or sukuk, which prepared the government.

A number of foreign banks in Indonesia, such as Citibank and HSBC, even getting ready to welcome with open sukuk sharia. Meanwhile, a number of investors from the Gulf countries are also preparing to buy banks in Indonesia and converted to the Islamic bank. The selected criteria are generally beraset banks are relatively small, ranging from Rp 500 billion and Rp 2 trillion. Once converted, the banks attempted to do a syndicated financing large projects, involving a global financial institution.

The presence of Islamic banking in Indonesia was pioneered by the establishment of Bank Muamalat Indonesia, initiated by the Indonesian Ulema Council (MUI) with the aim of accommodating a variety of aspirations and opinions in society, especially people of Islam that many argue that it is haraam because the bank interest, including usury and also to take the principle of attention. When viewed in terms of economic and business value, this represents a major breakthrough because 80% of Indonesian Moslems, of course, is a business with huge potential. Although some people argue that Islamic bank interest is not usury but avail, because the interest is given or taken by the bank are small so will not be harmed or didzolimi each other, but still, for the people of the Islamic establishment of sharia banks are a big improvement.

But the Islamic banking system in Indonesia is still not perfect or there are still shortcomings that still descended on Bank Indonesia, the Indonesian government ideally set up specialized financial institution at the same level of sharia Bank Indonesia, Bank Indonesia Sharia.

We hope the attention from governments and observer-based Islamic banking to further refine the system of Islamic banking in Indonesia to be more konprehensip and more perfect, not only founded the Islamic banking business because there is momentum per se, but note the rules and Islam as a whole.

Comparison between conventional and Islamic Banking Bank General
Just do a halal investment. 2. Based on the principle of revenue sharing, buy-sell, or rent. 3. Profit and falah orentet. 4. Relationships with customers in the form of partnerships. 5. Collection and disbursement of funds shall be in accordance with the Sharia Supervisory Board fatwa.

Conventional Banks
Wearing a flower prangkat
Investments that are halal and haram
Profit oriented.
Relationships with customers in the form of the relationship debtor / creditors.
There are no similar councils.