Classical Islamic Fatwa Framework in Mu'amalat for Islamic Banking Institutions (original) (raw)
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1st International Conference on Islamic Economics, Business, and Philanthropy, 2017
The rapid development of Islamic banking industry in Indonesia should be appreciated since it becomes one of the forms of implementation and greatness of Islam propagation in the country with the largest Muslim population in the world. The existence of various transaction models as well as their derivation and innovation inevitably demands the concerned parties to be accommodative and selective so that these developments can be responded and searched for the solutions according to the sharia corridor. The National Sharia Board of the Indonesian Council of Ulama (DSN MUI) is the only Indonesian official institution authorized for creating Islamic economic and financial fatwa as well as monitoring the application in Islamic financial institutions such as Islamic banks, insurances, and pawnshops. This research is the library research thus the research employs the qualitative approach with the documentary study method, and the analysis is the Critical Discourse Analysis. The focus or scope of the study is limited only to the DSN fatwas in the banking field. The research results discover that the maqasid al-sharia approach becomes one of the solutions of DSN MUI consideration in solving the considered problems in the banking field.
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Islamic banks in Indonesia have been significantly developing since 2008. This development has yet been supported by operational regulations. Islamic Banks operational mostly refers to fatwa of DSN-MUI. However, those fatwas must be converted to the regulations of Bank Indonesia or Financial Services Authority (OJK) to have binding power. This article aims at describing DSN-MUI’s fatwa position as the fundamental law of Islamic Banking implementation. Besides, this article compares the position of ulama’s fatwa in implementing Islamic Bank in several Muslim countries. The article is originated from Doctrinal Legal research with conceptual and comparative approaches. The result shows that DSN-MUI;s fatwa position in implementing Islamic Banks is not yet operational because it must be first converted into the regulations of Bank Indonesia or OJK. Different condition found in other Muslim countries, ulama’s fatwa becomes the main reference for implementing Islamic Banks. This is becaus...
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