International Journal of Environmental, Sustainability, and Social Science
Vol. 4 No. 3 (2023): International Journal of Environmental, Sustainability, and Social Science (May

Sharia Principles in the Material Law of the National Banking Legal System

Cik BASIR (West Jakarta Religious Court, Indonesia)



Article Info

Publish Date
31 May 2023

Abstract

The national banking legal system uses two operational principles, namely conventional and sharia. Sharia banking was born and based on the Islamic legal system. Islamic banks in Indonesia have only been operating for about 25 years. This is still relatively new compared to conventional banks which have been used for more than a century. Various regulations were made to support the development of Islamic banks. This paper will examine the scope of the national banking legal system and the implementation of sharia principles in the material law of the national banking legal system. From the results of the study it was concluded that: (1) The legal system of Islamic banking in Indonesia consists of three components of the legal system, namely legal substance (material law and formal law), structure, in the form of institutions that support Islamic banking, and culture, both corporate culture , as well as the culture of society. This is in accordance with the elements of the legal system put forward by L. Friedman. (2) The implementation of sharia principles in material law within the scope of the national banking legal system has been embodied in laws and regulations in the banking sector which contain sharia principles. Hierarchically starting from the constitution, namely the 1945 Constitution, Government Regulations, Financial Services Authority Regulations, National Economic Law Compilation and DSN-MUI Fatwas. However, in a number of regulatory matters (material law) Islamic banking is still the same as conventional banks.

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Journal Info

Abbrev

ijesss

Publisher

Subject

Economics, Econometrics & Finance Environmental Science Social Sciences

Description

International Journal of Environmental, Sustainability, and Social Science (abbreviated as IJESSS) p-ISSN 2720-9644 and e-ISSN 2721-0871 is a multidisciplinary journal covering all aspects of the environmental impacts of socio-economic development. The International Journal of Environmental, ...