<![CDATA[This study examines the impact of the lack of understanding of Islamic economics on the performance of Islamic banks. The main problem identified is that although interest in Islamic banking continues to increase, the level of understanding of the public and even some practitioners regarding the principles of Islamic economics is still relatively low. This condition has the potential to hinder the growth and effectiveness of Islamic bank operations. This study aims to analyze in depth how this lack of understanding affects various aspects of Islamic bank performance, including fund raising, financing distribution, customer loyalty, and institutional reputation. The research approach used is a qualitative method with case studies of several Islamic banks in Indonesia. Data were collected through in-depth interviews with bank management, employees, customers, and Islamic economics experts, as well as through analysis of internal documents and financial reports. The results of the study indicate that the lack of understanding of Islamic economics is negatively correlated with the performance of Islamic banks. This can be seen from the low interest of potential customers, difficulties in developing innovative products that are in accordance with Islamic law, high levels of complaints due to misunderstanding of contracts, and lack of trust from some of the community. The implications of this study highlight the urgency of massive and sustainable improvement of Islamic economic education and literacy, both for internal Islamic banks and the general public. Recommendations put forward include the development of a comprehensive Islamic education curriculum, ongoing training programs for bank employees, and effective socialization campaigns to improve public understanding. Thus, it is expected that the performance of Islamic banks can improve along with a better understanding of Islamic economic principles.]]>
