Islamic banks and Conventional banks can be distinguished from the understanding so that we can find out the understanding between Islamic banks and conventional banks. Conventional Banks are Banks that carry out their business activities in a conventional manner which in their activities provide services in the payment traffic in general based on procedures and regulations set by the state. In law no. 21 of 2008 concerning sharia banking expresses the notion of sharia banks. Islamic Banks, namely all business activities based on sharia law principles regulated in the Indonesian Ulema Council (MUI).
Conventional banks and Islamic banks (differences and similarities) we can know that the difference, in general, is that Islamic banks lawfully make investments only if conventional banks with investment methods are both halal and haram, Islamic banks use the principle of profit-sharing if the Bank Conventional methods use interest and Islamic banks with customers in the form of partnerships in the case of, conventional banks relationships with customers in the form of creditors and debtors. The equation is with the technical side of receiving money, the transfer mechanism, and the technology used is like computer technology.
Many people who refuse to apply the method of interest in conventional banks, the reasons are the first, according to Aristotle, interest makes people tempted to pursue profits and accumulate wealth so that money becomes unproductive and only creates a gap between the rich and the poor, the second according to Plato, interest causes disunity and feelings of dissatisfaction in the Ulama community also argued that Riba is unlawful in the Koran explaining that leaves usury and does not eat usury in the Koran Al Baqarah verse 278-280, Ali Imron verse 130 and Interest given by State-owned banks or conventional banks to their customers, which until now are in force, including Mustabihat cases.
Both of these banks have the same and very strong goals namely to prosper the Indonesian people's economy and maintain the financial stability in the country of Indonesia so that there is no monetary crisis that will continue going forward. Although in principle, these two are very different, namely conventional banks are more into large profit income with an interest rate system, it can be called usury while Islamic banks strongly oppose the existence of usury and create an Islamic Sharia foundation system with the Indonesian Ulema Council (MUI).
In Indonesia, the majority of the population is the highest Muslim religion in the world at this time is evidenced by based on data from the Global Religious Future Indonesian population of Muslims in 2010 reached 209.12 million people or with a range of 87% of the total population. Furthermore, in 2020 the Muslim population in Indonesia is estimated to reach 229.62 million people who will embrace Islam.
That way we as Muslims in Indonesia should have chosen a sharia bank to maintain the finances that we have rather than choose a conventional bank. why should we choose Islamic banks because the principles have been proven not to use usury that is prohibited by Islam if we choose conventional banks we will use the same interest method as prohibited by Islam.
