BANKING CONCEPT SYARIAH

In general understanding of Bank Islam (Islamic Bank) is a bank operation that is adapted to apply Islamic principles. Currently, many terms that are given to some entity other than the term Islamic Bank of Bank Islam itself, namely the Bank Without Interest (Interest-Free Bank), Bank Without Aba (Lariba Bank), and Bank of Sharia (Shari'a Bank). As will be discussed later, in a technical designation judicial practice Islamic Bank official terms the "Bank Sharia," or a full-called "Bank based on Sharia principles."
Banking laws of Indonesia, namely Law No. 7 / 1992 on Banking, as amended by Law No. 10 Year 1998 (next to the interests of this abbreviated UUPI), to distinguish a bank based activities into two, namely the banks that conduct business activities and conventional banks that conduct business activities based on the principles of sharia. As mentioned in point 13 Article 1 UUPI provide an understanding of the principles of sharia restrictions as the rule of Islamic law based on the agreement between the Bank and other parties for funds and / or financing business activities, or other activities which are stated in accordance with the Sharia, among others, based on the principles for financing results (mudharabah), based on the principles of financing capital investment (musharakah), principles of buying and selling goods with profit (murabahah), or the financing of capital goods based on the principles of pure, without the option to rent (ijarah), or with the option transfer ownership of the goods which are rented from the Bank by the other party (ijarah of iqtina).
Bank Syariah functions in line with the big banks are no different from conventional, ie, as intermediary institutions (an intermediary institution) that mobilize funds from the community and re-distribute funds to communities that need it in the form of financing facilities. The main difference lies in the type of benefits that are taken from the bank transactions that are carried out. When conventional banks base their profits from the interest rate, Bank Syariah from what is called as the benefits, either in the form of services (fee-based income) and mark-ups or profit margins, and the results (profit and loss sharing).
Besides dilibatkannya Islamic law and the exemption from the transaction mechanism of interest (interest free), other unique position of the Bank Syariah compared with conventional banks are Bank Syariah diperbolehkannya perform business activities that are multi-finance and trade (trading). This is related to the nature of the transaction, which the Bank is a Sharia investment and trading is very diverse and implementation of the Sharia Bank can be made, such as financing with the principles murabahah (trading), ijarah (rental) or ijarah of iqtina (lease) and other -other.
This paper made with the main objective to provide escort for the history of Bank Islam in Indonesia with a discussion concerning the development of the basic theory, institutional and legal positive about Islamic Banking. However, given Islamic banking is not a phenomenon typical of Indonesia and its development may not occur without the influence of the outside world, the previous chapter will discuss the development of Islamic banking in general outside the U.S. and internationally.