APPLICATION OF ISLAMIC ECONOMIC PRINCIPLES IN REALIZING MANAGEMENT BANKING WITHOUT INTEREST

Suharli Suharli,Abdul Wahab,Abdul Hamid Habbe

doi:10.31933/dijemss.v3i2.1071

Suharli Suharli, Abdul Wahab + Show 1 more

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https://doi.org/10.31933/dijemss.v3i2.1071

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Abstract

The emergence of the Islamic Economic System through Islamic Banking is expected to be a solution in the economic world. This paper purpose to review the principles of Islamic banking management without interest. The method used in this paper is a scientific study approach with library research, with data collection through a study of books, literature, notes, and various reports related to the problem to be solved. The results of the study found that the banking sector in the Islamic economy does not recognize interest rate instruments. The Islamic financial system applies profit and loss sharing, not to interest which has determined the profit level in advance. This Islamic economic value is implemented in Islamic banks and is based on three aspectsnamely aspects of faith, aspects of Sharia and aspects of morality. Islamic banking must also always refer to Islamic principles, namely Justice, Partnership, Transparency, and Universal.

Highlights

Islamic economy is present where a new economy has begun to develop
The emergence of the Islamic Economic System through Islamic Banking is expected to be a solution in this new economic world, it is hoped that the Islamic banking system can make the economies of countries in the world even better, especially in countries that are predominantly Muslim.(Mujib, 2017)
The size of the profit sharing obtained by Islamic banking customers is determined by the size of the profit sharing obtained by the bank from investment and financing activities carried out in the real sector.(Ilyas, 2019)

Summary

Introduction

Islamic economy is present where a new economy has begun to develop. Islamic economics is an economic system that uses Islamic law as its foundation. The emergence of Islamic Economics is followed by the emergence of Islamic banking. The development of the Islamic economy cannot be separated from the existing pattern of new economic development, namely the dynamics of rapid change, activities that seem without limits, the Islamic economic system is experiencing new historical developments in the modern era. The emergence of the Islamic Economic System through Islamic Banking is expected to be a solution in this new economic world, it is hoped that the Islamic banking system can make the economies of countries in the world even better, especially in countries that are predominantly Muslim.(Mujib, 2017)

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