Islamic banking and Muslims

Type :

Term papers

Pages :

10 pages

Format :

.doc

Published date :

10/01/2009

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Summary :

 
 

Table of Contents Islamic banking and Muslims Table of Contents

 
  1. Introduction
  2. The forbidden interest
  3. The homo Islamicus
  4. Muslims: Human beings imbued with Islamic values
  5. Muslims and Islamic banking
    1. The impacts of MUI's fatawa on Indonesian Muslims
    2. The optimal choice
    3. Transaction costs
    4. Risk aversion
  6. Conclusion
  7. 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.

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About the author :

pencil image Surya C. Researcher
Level :General public Study : Finance School/University : Gajah Mada University

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