Micro Financing Products in Islamic Banks : A Sharia Matter
The Book discusses the micro financing services that provided by Islamic banking institutions in Indonesia which accounted as the largest component of financing activities. The book highlights the history and development of micro financing in Islamic Financial Institutions IFis in Indonesia.
The book also proposes a new macro prudential framework by involving a new Shari’ah Board Authority DPSA under the Commissioners of OJK to regulate and supervise the shariah matters for Islamic financial institutions in Indonesia Afterward, the book attempts to evaluate the sharia aspects in micro financing products in Indonesian Islamic banks which cover seven Islamic banks and fifteen Islamic rural banks BPRS.
The book discusses and evaluates the sharia compliance of micro financing products in Islamic banks in Indonesia in accordance with the fatws of DSN-MUI, Bank Indonesia Regulations PBI, and classical figh doctrines. This study indicates that the majority of micro financing products in Islamic banks in Indonesia comply with Fatwa DSN-MUI and Bank Indonesia Regulations.
However, there are some relevant shari’ah issues that need to be further addressed despite their compliance with shari’ah regulations issued by DSN-MUI and Bank Indonesia, including proper shari’ah governance framework and combination of contracts and selling gold on installment that are clearly prohibited ina hadith of the Prophet Muhammad.
