Islamic banking and Muslims
Summary :
Table of Contents
- Introduction
- The forbidden interest
- The homo Islamicus
- Muslims: Human beings imbued with Islamic values
- Muslims and Islamic banking
- The impacts of MUI's fatawa on Indonesian Muslims
- The optimal choice
- Transaction costs
- Risk aversion
- Conclusion
- Bibliography
Abstract
The development of islamic banking in Indonesia got its best momentum in Indonesian struggle to recover the national economy from crisis. islamic banking has been being accepted by many communities -at least as one of the alternatives, in strengthening the financial sector.
Statistics of islamic banking released by Bank Indonesia in June 2003 shows that the two islamic banks and seven islamic banking units hold IDR 5.37 of IDR 1,111.68 billion of total national banking assets (0.48%). Despite their small proportion, the development of islamic banking in Indonesia evidences a significant process, with the high growth of average annual assets. This situation has further encouraged Indonesian Uleema Assembly (MUI) to issue fatawa on the prohibition of interest to be charged or provided in conventional banking system. Despite the accompanying polemics, this fatawa least of all reminds Indonesian Muslim communities that riba is forbidden in Islam and must be strictly avoided.
Statistics of islamic banking released by Bank Indonesia in June 2003 shows that the two islamic banks and seven islamic banking units hold IDR 5.37 of IDR 1,111.68 billion of total national banking assets (0.48%). Despite their small proportion, the development of islamic banking in Indonesia evidences a significant process, with the high growth of average annual assets. This situation has further encouraged Indonesian Uleema Assembly (MUI) to issue fatawa on the prohibition of interest to be charged or provided in conventional banking system. Despite the accompanying polemics, this fatawa least of all reminds Indonesian Muslim communities that riba is forbidden in Islam and must be strictly avoided.
See similar documents : Finance
4
Economic and political transition in Bahrain: Strong Rentier States and Strong Rentier Societies
Presentation | 11/04/2008 | en | .doc | 18 pages
Latest in the category : Finance
1
A study on the credit rating process and methodology
Term papers | 10/28/2009 | en | .doc | 9 pages
2
An overview of important concepts and theories in relation to foreign exchange (forex) rates
Term papers | 10/28/2009 | en | .doc | 10 pages
5
Financial ratios: Meaning, calculation and application
Term papers | 10/14/2009 | en | .doc | 10 pages
Most downloaded in the last 30 days : Finance
2
The sub-prime loans crisis and the recent turbulences in the credit markets (2008)
Presentation | 05/12/2009 | en | .doc | 6 pages
3
Efficiency analysis of conventional and Islamic banks in Indonesia using data envelopment analysis
Research papers | 10/01/2009 | en | .doc | 18 pages
Change Currency
Our guarantee :
How it works?
Quality guaranteed
Refunds
Secure payment
Who are we ?
