INTRODUCTION TO ISLAMIC BANKING AND FINANCE KELOMPOK 6 Nina Rosa Reza Kusuma

Islam & Mu’amalah Islam ; is a religion that offers guidance on aqidah (faith and belief), shari'ah (practices and activities) and akhlak (moralities and ethics). Islam ; is a religion that offers guidance on aqidah (faith and belief), shari'ah (practices and activities) and akhlak (moralities and ethics). Mu’amalah ; which is about man-to-man activities Mu’amalah ; which is about man-to-man activities

History and development of islamic banking 1973 : intensive efforts to have economic and banking based on islamic laws and rules known as shari’ah : intensive efforts to have economic and banking based on islamic laws and rules known as shari’ah : the first modern islamic banking in the world have been established : the first modern islamic banking in the world have been established.

Development of islamic banking in malaysia  1980 : LUTH (Lembaga Urusan Tabungan Haji), PERKIM and individuals have initiated actions toward the formation of islamic banking in the country.  1981 : the government has established and appointed members of a committee.  1983 : first islamic commercial bank “ Bank Islam Malaysia Berhad”

Islamic economic system  Siasah (public) sector  Tijarah (private) sector  Ijtimak (social welfare) sector

Riba or Interest Riba/usury is extra or excess in lending and borrowing or additional in term of weight or measurement in an exchange or a buy and sell transaction. Prohibited riba : Al Quran in verse 278 and 279 of Surah Al Baqarah.

The Sources of interest could be arising from: 1. A loan or debt (simple and compounding interest) 2. A buy and sell transaction (weight and measurement is unknown or not predetermine) 3. An exchange of currencies or any ribawi items.

Ribawi Items: the currencies or medium of exchange and foodstuffs. Currencies are : Gold Gold Silver Silver Currencies such as Ringgit Malaysia, US Dollar, British Pound, Singapore Dollar, Australian Dollar, Hongkong Dollar and Japanese Yen. Currencies such as Ringgit Malaysia, US Dollar, British Pound, Singapore Dollar, Australian Dollar, Hongkong Dollar and Japanese Yen.

Foodstuff are: Grain Meat Vegetable Fruit Condiment

There are four types of riba: 1. Riba Qard 2. Riba Jahiliyah 3. Riba Fadhl 4. Riba Nasiah/Riba yad

Mu’amalah Contracts Types of mu’amalah contracts: 1. Trading contracts.  cash sale and  credit sale transactions. 2. Participation contracts. 3. Capital or fund mobilisation contracts. 4. Other supporting contracts.

The End Thank you