ABSTRACT The increasingly dynamic development of Islamic economics demands innovation in Islamic banking products that remain based on Islamic principles. In the innovation process, fatwas have a very important position as normative and legal references for every product that will be launched by Islamic financial institutions. Therefore, the preparation of fatwas should not be done carelessly, but must prioritize the principles of legal ethics, namely a combination of compliance with Islamic law (sharia), positive law (national legislation), and professional scientific ethics. Legal ethics in this context includes the moral and legal responsibilities of scholars and Islamic financial authorities in ensuring that the products issued fatwas are not only halal according to fiqh, but also fair, transparent, and do not harm the community. This study aims to examine how legal ethics are applied in the process of preparing fatwas on Islamic banking products, as well as how the dynamics of Islamic economics influence the process. Using a descriptive qualitative approach and literature review, it was found that the existence of the National Sharia Council-Indonesian Ulema Council (DSN-MUI) as an authoritative institution has an important role in balancing the idealism of Islamic law and the reality of contemporary economic needs. However, challenges remain, especially in facing market pressures, industry interests, and the development of digital financial technology that demands a quick response. The results of the study show that the preparation of fatwas that are carried out carefully, accountably, and based on the principles of maqashid sharia and positive law can strengthen the legitimacy of Islamic banking products. Thus, legal ethics not only function as normative safeguards, but also as a bridge between the transcendental values of Islam and the pragmatic needs of modern society. Awareness of the importance of this legal ethics is very crucial in maintaining public trust and the sustainability of the Islamic economic system on a national and global scale.
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