Awang Long Law Review
Vol 5 No 1 (2022): Awang Long Law Review

APPLICATION OF THE INTEREST SYSTEM IN CONVENTIONAL BANKS AND ITS RELATION TO ISLAMIC LAW REGARDING USURY

M. Husni Ingratubun (STIH Umel Mandiri)

Article Info

Publish Date
30 Nov 2022

Abstract

Conventional banking operations benefit mainly from the difference between the deposit interest given to customers and the interest or credit loans given. In contrast, in Islamic Banks, the profits they get are not from interest but through profit sharing. The main difference between conventional banks and Islamic banking is the prohibition of Riba (interest) in Islamic banking. Under Sharia banking, bank interest is prohibited while trading is permitted by Allah. Riba is defined as Ziyadah (additional cost). Riba is an additional fee, both in trade transactions and loans that are illegal or contrary to the principles of Muamalah in Islam.

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Journal Info
Awang Long Law Review
Website

Abbrev

awl

Publisher

Sekolah Tinggi Ilmu Hukum Awang Long Samarinda

Subject

Law, Crime, Criminology & Criminal Justice

Description

Awang Long Law Review known as the ALLRev launched on November 1, 2018 and inaugurated formally by Chairman of the Awang Long School of Law. Besides "The Juris" Journal of Legal Sciences, Awang Long Law Review (ALLRev) is the official journal of the Awang Long School of Law published biannually (May ...