Islamic banks in general, have a meaning as a financial institution whose business is providing credit and services in the field of payment traffic and money circulation whose operations use the sharia concept. So all activities and businesses in the bank will always be related to the issue of money which is their merchandise (Heri Sudarsono, 2003: 18-19).
Still discussing the meaning of Islamic banks, these Islamic banks operate by Islamic sharia principles whose main source are Al-Qur'an and Hadits. In practice, Islamic banks will avoid practices that contain elements of usury and replace them with investment activities based on profit sharing and trade financing. Rewards Islamic bank received and paid to customers depending on the contract and the agreement entered into the customer and the bank. Akad in Islamic banking should be qualified and pillars that have been regulated in Islamic law.
The general public has been able to distinguish between Islamic banks and conventional banks, other than that the community needs to know the elements that are banned in Islamic banking practices. These elements include:
- Usury, according to Wikipedia is the determination of the interest or exceeds the amount of the loan at the time of repayment based on a certain percentage of the principal loan charged to the borrower, and this is contrary to the principle of Islamic muamalah. In practice, this is often exemplified by the money obtained from loans or loaning moneylenders.
- Maisir, author Muhammad Ayub defines maisir as "hoping for something of value easily and without paying equal compensation for it or without working for it, or without undertaking responsibility for it using a game of opportunity". This practice is very similar to drawing darts and gambling.
- Gharar or taghrir is a term in the study of Islamic law which means doubt, deception, or action aimed at harming others. Gharar can be in the form of a contract that contains an element of deception because there is no certainty, either regarding the presence or absence of the object of the contract, the size of the number, or the ability to submit the object mentioned in the contract.
- Haram, some people already know that haram is the object of transactions that are prohibited in religion, both in terms of elements and methods of acquisition.
After explaining the meaning of Islamic banks and their elements, the question will arise how the role of Islamic banks in the national economy. Will be explained as follows:
1. Islamic banks as implementing social activities
It is precisely this social role that is more able to attract the attention of customers to prefer sharia banking products rather than conventional. One of the studies in Malaysia shows that Islamic banks are the dominant choice of customers because of the Islamic basis and the financial quality and services offered by Islamic banks, in addition to the factors considered important are good social functioning practices as well as convenience and decent products.
2. Financial service providers