Main Article Content
Abstract
The major distinctive feature of the Islamic banking as compared to the conventional one lies on the pricing mechanism. The ‘new’ system applies variable pricing mechanism, as reflected on the Profit and Loss Sharing (PLS) system, meanwhile the ‘old’ system applies fixed pricing mechanism, as reflected on the Interest Based (IB) system. Several implications arise from this very basic difference. This paper discusses the implementation of Islamic banking, its socio-economic effect and its role in the development. As a new type of banking system, Islamic banking attracts serious attention from the business players and regulatory authority as well, around the world. The discussion in this paper includes comparison be¬tween these two systems on several instances; the socio-economic effect of the implementa¬tion of Islamic banking; and its role on the (economic) development. In addition the paper also prescribes the direction and the policy required for developing Islamic bank.
Keywords: Islamic banking, Profit and Loss Sharing, community welfare
Keywords: Islamic banking, Profit and Loss Sharing, community welfare
Article Details
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
Tohirin, A. (2009). Implementasi Perbankan Islam: Pengaruh Sosio-Eko¬nomis Dan Peranannya Dalam Pembangunan. Economic Journal of Emerging Markets, 8(1). https://doi.org/10.20885/ejem.v8i1.642