Why islamic banking in indonesia does not use profit sharing

Reference no: EM132771387

Although both are used in the calculation of profit sharing, there are several conditions that must be known before entering into a business cooperation contract. So that there are no disputes when it comes time to share the profits later.

That is why the selection of a profit sharing calculation mechanism needs to be agreed upon before entering into a business cooperation agreement using the mudharabah principle.
Sharia banking does not use interest or interest practices. Savings owners, depositors or mudharabah checking account holders will get a share of the profits.
And it turns out that the Sharia Bank business profit sharing scheme does not use profit sharing and revenue sharing, but net revenue sharing. This is in accordance with the direction of the Indonesian Ulema Council on the fatwa regarding the principle of distribution of business results in Islamic financial institutions, no 15 of 2000.

Problem 1: Analyze why Islamic banking in Indonesia does not use profit sharing or revenue sharing? And explain the principles of transactions that use profit sharing.

Reference no: EM132771387

Questions Cloud

What transaction principles were used in the transaction : What transaction principles were used in the above transaction? Furthermore, you are asked to journal the transactions carried out by Islamic Banks!

How do you anticipate the legalization of cannabis : How do you anticipate the legalization of cannabis in some states will impact that prevalence of cannabis use among children and adolescents?

Understanding and mapping change in organization : Analyze methods for understanding and mapping change in an organization.

Explain how negative feedback operates : Explain how negative feedback operates to raise a person's body temperature when they are cold.

Why islamic banking in indonesia does not use profit sharing : Why Islamic banking in Indonesia does not use profit sharing or revenue sharing? And explain the principles of transactions that use profit sharing

How does excess body weight affect five body systems : How does excess body weight affect Five body systems? Describe the mechanisms of extra body weight on each body system.

Compute the Consolidated COGS : During the year, Paul sold merchandise to Shane for P60,000 at a price based on the normal mark-up. Compute the Consolidated COGS

What the general journal entry to record this transaction is : What the general journal entry to record this transaction is? On 1 December, Salon Identity Ltd purchased hair-drying equipment for $65000. Paid $5000 deposit

What about if you were not being graded : Have you ever been assigned to read a book that had so many big words in it that you had to keep the dictionary by your side? If it was assigned for school.

User Account

All Pages