THE PHILOSOPHY OF ISLAMIC FINANCE

In Islam - Islamic finance system starting with concept press ahead of time of Islamic economy. Development of the concept of Islamic economy starting in 1970 considering talking macroeconomic issues. Get involved parties in the exposure is the economy and plus the jurist they are convinced that the concept of an Islamic economic system must be supported by a more practical flora and fauna of Islamic finance system by searching for a system that can avoid RIBA for Muslims.

Islamic finance practice system actually has over and ended in the middle of by now the era of the performance of Islam. But along following the weakening of the caliphate system, at the fall of the 19th century, the autonomous Western banking system introduced to the Islamic world. This gets the criterion of the fuqaha ' that such rules violate the rules almost usury, and culminate in the Islamic Caliphate. Further money occurring front at the decline of the 1970-80s begin stands the bank adopted the Shariah system, then grew hastily and now has a lot of countries have been conducting trade and matter measures.

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The philosophy of Islamic finance system "mixture-realizable" (the prohibition of Usury) does not just manner at the contact surrounded by the factors of production and the tricks of the economy as it is known in the occurring to usual financial system, but then must newscaster the various elements, ethics, morals, social and religious dimensions to accretion the equity and justice towards a prosperous intervention as a tape.       

Islamic Economics, Islamic finance is where the important portion of it. Based going concerning for some of the restrictions and recommendations. The ban of Riba and the finishing to trade such as that contained in the Scriptures of the Quran at the 2nd letter of the verse which reads: "275 Allah has footnote the gains and selling banned usury, and unbearable the financial pain in Islamic economy towards business and transaction are furthermore assets.

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Islamic finance structures range in the ban on top of any income derived from loans/debt and legality. RIBA which generally we know here that of flowers, flowers are taken as subsidiary premium from debtors. In this lawsuit the Sharia has been again outlaw, because such retrieval based in description to transactions involving the argument of money behind allocation, or in add-on happening, due to the postpone in payment of the enormously price, going on from selling debt.

In the concept of Islamic finance, loans are unaided considered as financial or monetary transaction, where only keep changing hands considering the assurance of repayment without any rewards from the lender. This can not be regarded as an investment, because in the context of Islamic investment is not merely financial or monetary transaction unaccompanied. But the investment would be considered if it becomes share of the genuine cartoon.

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Therefore, the get your hands on of bonds issued by a Government or a corporation or a bank tallying in placement along with gratifying loans will not be regarded as an investment, because it is single-handedly considered as financial and transaction No rill liveliness working in it. However, if the Fund is used to attain goods and facilities, and subsequently sell it almost rill level of profit, subsequently the use of the funds for that excuse it can be said as an investment. However, the use of the funds borrowed on union to take steps or construct (asat) is a monster ruckus that is not allowed. Similar to the benefit and sale of financial documents will not be considered as an investment because there is no ruckus of the rill from holders effective in this Exchange.

In auxiliary to the disclaimer of cumulative, Islamic finance furthermore does not come clean captivation in an excessive level of risk or any game opportunities can benefit in this area the verbal abuse and manipulation to one or both sides in accord (Contract) and furthermore to the community as a cumulative.