<![CDATA[This paper aimed at presenting conceptual model that can explain conceptual aplication of profit and loss sharing. Theoritically, Islamic bank, as an intermediary institution, is believed as financial institution helping public economic activities and at the same time carrying out human life. Profit and loss sharing, as one of an Islamic economic mechanism, could be an economic solution of the lack of economics thought. The aplication of profit and loss sharing in budgeting can increase thecapability of fund mobilization and investment portofolio without rising of Islamic bank.Keywords: Profit and loss sharing, economic mechanism, Islamic bank]]>
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