Publication Date: 2020/11/06
Abstract: The purpose of this research is to analyze and find out how much influence and the role of the Profit and Loss Sharing system implemented by Islamic banks on the growth of Islamic banking in Indonesia. By using a qualitative research methodology, the results of his research show that the profit and loss sharing system has influenced the growth of Islamic banking in Indonesia since the last five years. Islamic banking products, namely muá¸harabah and musyarakah, which are a source of operating income from profit sharing, can contribute significantly to the growth of Islamic banking. The factors that influence the profit and loss sharing system that contribute to the growth of Islamic banks in Indonesia are because the bank interest system applied by conventional banks is considered not to pay attention to the elements of fairness and risk in profit and loss sharing, and some Indonesians consider the bank interest system to be haram, so that the system of profit and loss sharing is considered in accordance with Islamic law and paying attention to the element of justice in profit sharing is an alternative solution for the community in conducting banking business activities in Indonesia.
Keywords: Profit Loss Sharing, Growth, Banks, Interest, Solution.
DOI: No DOI Available
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT20OCT627.pdf
REFERENCES