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Published On: Fri, Dec 2nd, 2016

Five Differences Islamic Banking and Conventional Banking

jasa seo dan internet marketing

undercover.co.id –  Many people do not understand yet the differences between Islamic banking and conventional banking. This is not surprising. Because many people find it difficult to understand some of the terms used by Islamic banking compared with conventional banking.

 

The differences between Islamic banking with conventional banking are in the “terms” and the “basic principles of service”. These two things often make people confused. To help you better understand the differences between the two types of banking, here are five things you need to understand and take note of the Islamic banking:

  1. Akad

All transaction or agreement made in Islamic banking must comply with the principles of the Islamic Shariah, based on the Qur’an and Hadith and acquire fatwa from the Indonesian Ulema Council (MUI). The contracts or transactions in Islamic banking that widely use such as akad al-Mudharabah (profit sharing), al-Musharaka (partnership), al-musaqat (farm cooperation), al-Ba’i (profit sharing), al- ijara (leasing), and al-wakalah (agency).

For conventional banking, the contract or agreement letter is made based on the positive law in Indonesia.

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