Sharia Banking Forum (questions & answers)
Forum : Based on the material for this session, there is something I would like to ask
regarding the growth of Sharia Banks and its businesses.
The growth of Sharia Banks itself has it's own ups and downs. Here in Indonesia, the latest
update stated that Indonesia will have the biggest sharia bank, called Bank Syariah Indonesia
(BSI) which collaborate with 3 well-known banks. Is it categorized as another kick off of the
development for Indonesian Sharia Bank Industry? Thank you. (My own question)
Answer: Your question is very interesting, why are Islamic banks in Indonesia slow to
develop, this is because of the lack of socialization and understanding of Islamic finance.
(The lecturer’s answer)
Forum : I am understand about the material this session pretty well. However, I did not
understand fully about Ikrah, especially on how the party can eliminate willingness and
destroy the endeavor (choice) of the person being forced.
Answer : IKRAH in Arabic which means hate. So the meaning of ikrah is a condition that
makes a person have to do something he hates.
Forum : What I understand in this session is about Sharia banking and its basic principles.
The basic principles of the bank are: adl (justice), ukhuwah (brotherhood), hurriyah
masuliyah (freedom that still controlled and responsible), akhlaq (morals), tauhid
(unifaction), synergy, ulil amri (knowledge of and follow the one with authority), khalifah
(leader), al amwal (a journal for Islamic economic law), maslahah and falah (pblic interest
and salvation).
Sharia banking’s principles are from three pillars: Aqidah, Sharia and Akhlaq (Morals). By
those pillars, the user of this bank was hoping it operates according to the flow of the
following principles such as justice, partnership, transparency and universal.
There are things that prohibited in Islamic banking operations, including:
- Maisir; getting profit without having to work hard (gambling),
- Gharar; something that contains uncertainty (betting),
- Riba; taking additional or excesses from the principal asset or capital in a false manner.
There’s an opinion from Ulama about interest that it charged in loan transactions like account
payable and qardh has met the criteria for usury, which is forbidden in Sharia banking.
Answer : (approved)
, Forum : What I understand from this session are margin and how Islamic banking has their
own system, called “profit sharing”. Margin or profit margin, is a certain percentage which is
determined by per year. Sharia bank determines it for financing products based in Natural
Certified Contract (NCC), a business contract that provide certainty of payment, in terms of
amount and time. For example: financing murabhahah, ijarah, ijarah muntahia bit tamlik,
salam and istishna.
Meanwhile profit sharing is a fund processing system in Islamic economy, the sharing of
business profits between the owner of the capital (shahibul maal) and the manager
(mudharib). In other words, profit sharing is the profit or proceeds obtained from find
management, both investment and sale and purchase transactions provided to customers with
calculations that are agreed by following approach of revenue sharing and profit & loss
sharing. In general, the principles of profit sharing in Islamic banking can be carried out in
four main contracts such as: al musyarikah, al mudharabah, al muzara’ah and al musaqolah.
The contracts of this are consist of: musyarakah (join venture profit & loss sharing) and
mudharabah (trustee profit sharing).
There is a method to determine profit margin; mark-up pricing, where the determination of
the price level is by marking up the production cost of the commodity concerned. The factors
that need to be considered in determining margins and profit sharing are: funding
composition, competition level, financing risk, types of customers, economic conditions and
the rate of profit expected by the bank.
In profit sharing, the concept of it are explained as: fund owners invest their funds through
financial institutions that act as fund manager and the managers manages the funds in a
system, known as the pool of fund system, then the manager will invest the funds into viable
and profitable project or business that fulfils all aspects of sharia, the two parties make an
agreement that contain several stuffs (scope of the cooperation, nominal of funds, ratio, time
period) to be valid, and lastly the sources of funds (saving, capital and other party’s debt).
Answer : (approved)
Forum : Hello Ma’am thank you for this session material. However, there is something I
would ask regarding Qard in sharia banking.
In the third session, you stated that an opinion from Ulama about interest that it charged in
loan transactions like account payable and Qard has met the criteria for usury, which is
forbidden in Sharia banking.
Although the statement was like that, in this session Qard is one of Sharia banking’s product
and services that can be used for the customers by having an agreement towards the bank and
Islamic financial institution (LKS).
Forum : Based on the material for this session, there is something I would like to ask
regarding the growth of Sharia Banks and its businesses.
The growth of Sharia Banks itself has it's own ups and downs. Here in Indonesia, the latest
update stated that Indonesia will have the biggest sharia bank, called Bank Syariah Indonesia
(BSI) which collaborate with 3 well-known banks. Is it categorized as another kick off of the
development for Indonesian Sharia Bank Industry? Thank you. (My own question)
Answer: Your question is very interesting, why are Islamic banks in Indonesia slow to
develop, this is because of the lack of socialization and understanding of Islamic finance.
(The lecturer’s answer)
Forum : I am understand about the material this session pretty well. However, I did not
understand fully about Ikrah, especially on how the party can eliminate willingness and
destroy the endeavor (choice) of the person being forced.
Answer : IKRAH in Arabic which means hate. So the meaning of ikrah is a condition that
makes a person have to do something he hates.
Forum : What I understand in this session is about Sharia banking and its basic principles.
The basic principles of the bank are: adl (justice), ukhuwah (brotherhood), hurriyah
masuliyah (freedom that still controlled and responsible), akhlaq (morals), tauhid
(unifaction), synergy, ulil amri (knowledge of and follow the one with authority), khalifah
(leader), al amwal (a journal for Islamic economic law), maslahah and falah (pblic interest
and salvation).
Sharia banking’s principles are from three pillars: Aqidah, Sharia and Akhlaq (Morals). By
those pillars, the user of this bank was hoping it operates according to the flow of the
following principles such as justice, partnership, transparency and universal.
There are things that prohibited in Islamic banking operations, including:
- Maisir; getting profit without having to work hard (gambling),
- Gharar; something that contains uncertainty (betting),
- Riba; taking additional or excesses from the principal asset or capital in a false manner.
There’s an opinion from Ulama about interest that it charged in loan transactions like account
payable and qardh has met the criteria for usury, which is forbidden in Sharia banking.
Answer : (approved)
, Forum : What I understand from this session are margin and how Islamic banking has their
own system, called “profit sharing”. Margin or profit margin, is a certain percentage which is
determined by per year. Sharia bank determines it for financing products based in Natural
Certified Contract (NCC), a business contract that provide certainty of payment, in terms of
amount and time. For example: financing murabhahah, ijarah, ijarah muntahia bit tamlik,
salam and istishna.
Meanwhile profit sharing is a fund processing system in Islamic economy, the sharing of
business profits between the owner of the capital (shahibul maal) and the manager
(mudharib). In other words, profit sharing is the profit or proceeds obtained from find
management, both investment and sale and purchase transactions provided to customers with
calculations that are agreed by following approach of revenue sharing and profit & loss
sharing. In general, the principles of profit sharing in Islamic banking can be carried out in
four main contracts such as: al musyarikah, al mudharabah, al muzara’ah and al musaqolah.
The contracts of this are consist of: musyarakah (join venture profit & loss sharing) and
mudharabah (trustee profit sharing).
There is a method to determine profit margin; mark-up pricing, where the determination of
the price level is by marking up the production cost of the commodity concerned. The factors
that need to be considered in determining margins and profit sharing are: funding
composition, competition level, financing risk, types of customers, economic conditions and
the rate of profit expected by the bank.
In profit sharing, the concept of it are explained as: fund owners invest their funds through
financial institutions that act as fund manager and the managers manages the funds in a
system, known as the pool of fund system, then the manager will invest the funds into viable
and profitable project or business that fulfils all aspects of sharia, the two parties make an
agreement that contain several stuffs (scope of the cooperation, nominal of funds, ratio, time
period) to be valid, and lastly the sources of funds (saving, capital and other party’s debt).
Answer : (approved)
Forum : Hello Ma’am thank you for this session material. However, there is something I
would ask regarding Qard in sharia banking.
In the third session, you stated that an opinion from Ulama about interest that it charged in
loan transactions like account payable and Qard has met the criteria for usury, which is
forbidden in Sharia banking.
Although the statement was like that, in this session Qard is one of Sharia banking’s product
and services that can be used for the customers by having an agreement towards the bank and
Islamic financial institution (LKS).
