The Profit-Sharing System in Financing Islamic Banking

Abstract

Sharia Banking is a business entity that carries out the function of collecting funds from parties with a surplus of funds and then channeling them to parties with a deficit of funds and providing other financial services based on Islamic sharia principles. This article analyzes. This type of research uses normative legal research, using a conceptual approach and a statutory approach as well as the Koran and hadith, primary and secondary.  Legal materials obtained and analyzed qualitatively and then presented descriptively. The article aims to explain in general, the principles of sharia financing business activities include justice ('adl), balance (tawazun), kemashlahatan (maslahah), universalism (alamiyah), and do not contain gharar, maisir, usury, zhulm, risywah, and other haram objects. Financing or financing is funding provided by one party to another to support planned investments, both carried out by themselves and institutions. In other words, financing is funding issued to support planned investments. Law Number 10 of 1998 states that financing based on sharia principles is the provision of money or bills that are equated with it based on an agreement or agreement between a bank and another party that requires the financed party to return the money or bill after a certain period of time in return or profit sharing.