Implementation System Finance Sharia in Banking Institutions Islam

Abstract

The Islamic financial system is an integral part of the Islamic economic system that regulates financial activities based on the principles of justice, transparency, and social responsibility, while prohibiting usury (interest), gharar (uncertainty), and maisir (speculation). This article aims to examine the implementation of the Islamic financial system in Islamic banking institutions, focusing on its legal foundations, core principles, and economic impacts. The research method employed is library research by reviewing relevant literature, including textbooks, academic journals, statutory regulations, and fatwas issued by the National Sharia Council of the Indonesian Ulema Council. The findings indicate that Islamic banking implements the Islamic financial system through sharia-compliant contracts such as mudharabah, musyarakah, murabahah, and ijarah. This system promotes fair partnership relationships between banks and customers, enhances transparency, strengthens financial stability, and contributes to greater financial inclusion and social welfare. Therefore, the Islamic financial system demonstrates strong potential as an ethical, just, and sustainable alternative to conventional financial systems.