DEVELOPMENT OF SHARIA BANKING IN NATIONAL LEGAL SYSTEM AND NATIONAL BANKING SYSTEM IN INDONESIA
Abstract
Sharia banks are banks that carry out their business activities based on the principles of Islamic law in banking activities based on fatwas issued by the National Sharia Council of the Majelis Ulama Indonesia. This research aims to explain the development of sharia banking in the national legal system and national banking system in Indonesia. The method used in this research is normative legal research using the statutory approach. The results of this research are that the initiative regarding the establishment of sharia banks in Indonesia began in 1990 by the Majelis Ulama Indonesia, which was realized with the establishment of Bank Muamalat Indonesia on November 1, 1991. The initial development of sharia banking in the national banking system was responded quickly by the government with the enactment of Law No. 7/1992 concerning Banking, which was later amended by Law No. 10/1998. In addition to being devastating to the national banking system, the economic crisis that occurred in 1998 also became a starting point for the development of sharia banking in Indonesia. Some conventional banks began to expand their business by establishing sharia banks. Responding to the significant development of sharia banking in the national banking system, on July 16, 2008 Law No. 21/2008 concerning Sharia Banking was passed as a separate legal basis for sharia banks in Indonesia.
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