Understanding Sharia Bank According to Experts

• Siamat Dahlam

According to Siamat Dahlam, sharia bank is a bank that runs a banking business based on or observed the principles of sharia contained in the Qur'an and Hadith.

• Schaik

According to Scahik, the definition of Islamic banks is a form of modern banks based on Islamic religious laws, developed in medieval Islam by using the concept of profit sharing and for risk as the main system and eliminate the financial system based on the assumption of profit certainty that has been predetermined.

• Sudarsono

According Sudarsono, Islamic banks are one of the state financial institutions that provide credit and other banking services in the traffic payments and circulation of money that operate based on the principles of Islamic religion or sharia principles.

• Perwataatmadja

According Perwataatmadja, the definition of Islamic banks is a bank that operates by following the principles of sharia or Islamic that the procedure of implementation is based on the provisions of Al - Qur'an and Hadith.

• Law no. 21 of 2008

According to Law No.21 of 2008, sharia banking is anything related to sharia banks and sharia business units that include institutions, business activities, until the process of implementation of its business activities.

Bank Syariah is a bank that runs its business activities by using the basic principles of sharia consisting of BUS (Sharia Commercial Bank), BPRS (Sharia Rural Bank), and UUS (Sharia Business Unit).

Function of Sharia Bank

• Raiser of Funds

Just like commercial banks, sharia banks have a primary function as collectors of funds from the community. The difference is, if the conventional bank the savers get interest in the form of interest, in syariah bank savers will get a reward in the form of profit sharing.

• Fund Distributors

The main function of the second syariah bank is as a channel of funds. Funds that have been collected from customers, will be channeled back to other customers with profit sharing system.

• Providing Bank Services

The function of the third syariah bank is as a provider of banking services. In this case, Islamic banks serve as service providers such as transfer services, book transfers, cash withdrawal services, and other banking services.