CHAPTER III

CLOSING

A. Conclusion
The basic objective of Islamic banking, as emphasized in the Islamic
Banking Handbook, is to provide financial facilities by developing financial
instruments that comply with Islamic rules and norms, Sharia. The handbook states:
"The main purpose of Islamic banking is not to provide socio-economic benefits for
Muslims".
In addition, Islamic banking is in accordance with the philosophical
foundation of Islam. Since Allah is the creator and ultimate owner of the universe,
institutions or humans have the role of caliph in society. Therefore, banking
institutions must integrate moral values with economic actions. Money and other
resources are thus social tools to achieve optimal social well-being and welfare.
In view of the foregoing, the objective of Islamic banking is to promote,
foster and develop the application of Islamic principles, laws and traditions for
financial transactions, banking and related business affairs services and to promote
products based on Islamic principles. As discussed earlier in this study, Islam is a
complete way of life and thus prescribes the safe way all actions of a Muslim should
be performed. Therefore, carrying out worldly affairs, including banking, in a
manner determined by sharia is the obligation of a Muslim to be seen as worship.
This objective is truly reflected in the function of Islamic banks as
determined by the International Association of Islamic Banks (IAIB) in the following
sentences: “Islamic banks basically apply a new banking concept that adheres to
sharia rules in finance and other affairs. In addition, Banks that function in this way
must reflect Islamic principles in real life. Banks should work towards the
establishment of an Islamic society. Therefore, one of the main goals is the
deepening of the religious spirit among the people.
The aims and philosophy of Islamic banking are thus in line with the
revelations in the Qur'an and Hadith, and are expected to be guided by this
philosophy. Establishing the right philosophy is important for any Islamic banking or
financial institution mainly for two reasons.
 First, the philosophy will be used by the management or policy makers of
Islamic banks in the process of formulating company goals and policies.
Second, this philosophy serves as an indicator of whether a particular
Islamic bank holds true Islamic principles or not.
Riba is prohibited in Islam, income or profit from investment in trade and
business is allowed and encouraged as long as the associated risks and benefits are
not unilateral but balanced. So, from a religious perspective, the establishment of an
Islamic bank is considered the right move because of its involvement in legitimate
trade, and paving the way for running a sharia-compliant banking business.
Eliminating usury in the banking system is an integral part of Islamic
business principles. The management and staff of this system are bound to conduct
their business according to Islamic business principles in addition to the normal
objective of maximizing profits. These principles include honesty, justice and
equality as ordained by Allah and practiced by the Prophet of Allah.
However, the absolute prohibition of usury in the Qur'an is an injunction to
build an economic system in which all forms of exploitation are eliminated,
especially the injustice of investors who are guaranteed positive returns without
sharing the risk, while entrepreneurs, despite their management and hard work, are
not convinced of this. positive return. The prohibition of usury in the Qur'an is
therefore, a way to build equality between financiers and entrepreneurs. Thus, any
attempt to treat the prohibition of usury as an isolated religious injunction rather than
as an integral part of the Islamic economic order with its overall ethos, goals and
values bound to create confusion.
Far more importantly, despite these differences, the opinion of the majority
of Muslim jurists is by no means possible to justify riba al-nasi'ah or riba al-fadl. All
Muslim jurists agree in condemning usury and are supported by both the Qur'an. and
Hadith, the main source of Islamic sharia a legal decree issued by Islamic scholars at
the second conference of the Islamic Research Academy in 1965 in a practical and
unequivocal manner, provides strong support for complete agreement on the
prohibition.
In the process of running a business, Islamic banking seeks to balance
income and expenses with the aim of maximizing social benefits. It should be
emphasized that in Islam income must be lawful. When it comes to spending wealth,
he demands that his followers spend it for the welfare of the people and not to waste
it or use it in an illegitimate way. The Islamic bank's relationship with its clients is
not a lender-borrower relationship, but a business partner relationship.
It can be said that some of the goals and functions of the conventional
banking system. Although there may be apparent similarities, there are actually
differences in the commitments of the two systems to spiritual values, socio-
economic justice and human brotherhood because goals and objectives in Islam are
an inviolable part of ideology and belief.