This article review Islamic law quoted from jurists’ opinion and legal experts on the use of auction trading theory in collateral sale. Every financial transaction banking required a guarantee. It is intended to save bank funds if customer defaults. Based constitutional act Number 4 1996 mortgage rights, banks have right confiscate asset (guarantees) who has reached due date without intention p...

The purpose of this paper is to examine co-creation of non-economic values in Islamic banking services and their significance for service science by comparing Islamic and conventional banking services. Although many scholars have discussed co-creation of values in services, most of them have focused on only economic values. Following Sharia (Islamic principles that are based on Qur’an and Sunna...

In developing and structuring an Islamic banking product, one of the areas that should be addressed is to mitigate risk includes default risk. Financial institutions will always exposed by customers. This faced banks as well when granting financing facilities customers irrespective underlying Shariah contracts apply product structure. order such risk, bank normally impose late payment charges i...

Using the Shariah (Islamic legal rulings) and its higher ethical objectives namely maqasid shariah, purpose of this paper is to analyze success Banking in Indonesia. The shariah index (MSI) limited (LMSI) are emphasizes disclosures regarding education, social justice, redistribution wealth. Researchers assess performance selected banks Indonesia from annual reports. Simple Additive Weighting (S...

Maqasid Shariah (MS) is a tool for analyzing the acceptability of Islamic structural reforms and their alignment with law's principles, aims, objectives. Measurement banks' performance can use MS index to find out what extent where level achievement sharia values carried in shariah banking. The purpose this article investigate legislative framework as financial institutions Malaysia Indonesia. ...

Ar-Rahnu, also known as Islamic pawn broking, is one of the Shariah-compliant financings implementing Shariah concepts Tawarruq, Rahn, Wadi’ah, was founded in Malaysia three decades ago an alternative to conventional broking. In responding this matter, Co-opbank Pertama (M) Berhad, Malaysia’s cooperative banks, has established and offered Ar-Rahnu financing since 2018 their products throughout ...

accordingly, this study attempts to present an effective tool based on the securitized commodity murabahah and to fulfill its feasibility study.  the overall structure of the tool is such that the banks with surplus funds, at first, reallocate their resources to banks in deficit by commodity murabahah program and then convert their demands from those banks to securitized commodity murabahah, an...

This paper investigates the question of whether the phenomenon of Islamic finance who based on Shariah, or Islamic law is truly globalizing and spreading as a universal system of finance and banking. The paper also addresses various aspects of the globalization for Islamic finance, among other, the issue of the rise of Islamic banking in the world, Islamic jurisprudence and finance, global stan...

Islamic banking is currently one of the fastest growing segments of the financial market industry, operating in over 75 countries through 300 institutions. While past literature has established the development of financial institutions as a determinant of economic growth, research on the correlation of the diffusion of Islamic banking with economic growth is limited. This study seeks to add to ...