Proceedings of 1st International Conference of Law and Justice - Good Governance and Human Rights in Muslim Countries: Experiences and Challenges (ICLJ 2017)

The Sharia Compliance of Islamic Multi Contract in Islamic Banking

Authors
Muhammad Maksum
Corresponding Author
Muhammad Maksum
Available Online November 2017.
DOI
https://doi.org/10.2991/iclj-17.2018.32How to use a DOI?
Keywords
Multi Contract; Fatwa; Islamic Banking; Usury; Profit Sharing;
Abstract
Contract (akad) in Islamic banking transactions differs from the one in conventional banking. Although both produce the same product with the same name, but with certain contracts, it becomes distinct in characteristics. Some products are even a combination of multiple contracts (multi contract). By comparing the Sharia standards specified in the fatwa by the National Sharia Board (Dewan Syariah Nasional/DSN), Indonesian Ulema Council, with multi contract practices in Islamic banking, the results of the study prove to still find prohibited elements in the practices, especially usury. Here, the contract practices do not comply with the provisions mentioned in the fatwa. To avoid such usury, profit sharing system is an alternative to take and to promote.
Open Access
This is an open access article distributed under the CC BY-NC license.

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TY  - CONF
AU  - Muhammad Maksum
PY  - 2017/11
DA  - 2017/11
TI  - The Sharia Compliance of Islamic Multi Contract in Islamic Banking
BT  - 1st International Conference of Law and Justice - Good Governance and Human Rights in Muslim Countries: Experiences and Challenges (ICLJ 2017)
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/iclj-17.2018.32
DO  - https://doi.org/10.2991/iclj-17.2018.32
ID  - Maksum2017/11
ER  -