A discourse appear to the surface, to counter the problem of Global Crisis by the implementation of Syariah Economics. Syariah Economics, in a nut shell, is a concept of economics, which somehow is sourced from the Muslims, based on Quran and Hadits, to be implemented to the human beings actual life with the base of share (it may be share of loss or share of profits. So, may it be called “win-win solution” economics system). The first problem of implementing this concept (well actually it still becomes a pro contra until today anyway) was the consideration of the source of the concept, which is Muslims. Non-Muslims sees that it may lead them to a discrimination, wherein that concept includes only something coming from the Quran. On the other side, Muslims were believed to be radical in some ways (like those terrorist acts done by them), so that Muslims were no longer trusted. Nevertheless, it has now come to the phase were this concept is seen from the objective side.
Sub Prime Mortgage
If wee see what happened to USA, the problem of sub prime mortgage, started from Fannie Mae and Freddie Mac, the biggest credit housing company, lend money to the bank. Bank was wrongly to not see the potential of the company to not be ably to return the money. In the actual system, loaner should supervise the asset of the company to see the feasibility of returning the money loaned. For this case, even both concepts explained that in every kinds of debts, creditor should supervise the asset of debtors. This, the first is to make sure that the money will be returned. Second, to keep the business running. In fact, if the money was not returned, business would be stocked in problem of liabilities. This happened to the bank in USA, wherein the bank merely lend the money, without a proper supervision. The company then did a so-called bad investment by establishing Mortgage Backed Security (MBS-fzm), in which is the derivation of the debt to another party. Several MBS’s was bought by Lehman Brothers company, where again it was derived with the name of Collateralized Debt Obligation (CBO-fzm). So on, it was derived until seven steps.
The problem of the derivation was such a big problem in the US. Govt and experts could not predict the real loss and the number of the money circled by that system. In such a condition, it gives direct impact to the world also, because the position of America as the central base for the economy in the whole world. As America falls down, the rest of the world falls down as well, moreover those who are dependent to America in terms of economy.
Derivation of Debt in Islamic Finance Concept
According to the holy Quran (Islams Holy Bible), in Surah Al-Baqarah; Verse 278-279; Chapter 2, that every kinds of debts may not be attributed by any kinds of interests, because it consist riba. Riba, in Islam is a sum of money in which the acceptance is based on immoral way, i.e. causing the other party’s loss or through fraud, etc. In Islamic Economics and Finance itself, as explained previously, is a system of share. The implementation of interests may cause other party’s loss, while in the other side, our profit. It is based on information disclose, all kinds of interests are known by all parties. It is an effective way of running an economy if all party has the equal share. Because, if we see what happened in the US, one party, Bank, was being ………
On the second part, in Islamic financial concepts, derivation of debt does not have any excuses. One derivation from the Creditor to the Debtors is called as Mudharabah. Mudharabah is the Islamic investment system, carried by Mudharib as the executor and Shahibul Maal as the investor who has the money.
Syariah Banking to be Implemented: Advantages
More about other concepts of Islamic Banking maybe seen in previous posts, i.e. Analisis Kelayakan Pegadaian Syariah (in Indonesian), or Mudharabah Scheme for Syariah Banking.
The features available in Syariah, win-win, may be looked vague. The debate raises that either investments, commerce, or other divisions of economy is won by the party who has higher ability in their respective fields or not….
Note: This post is not done. Author will finish the post after three days. It need research and analysis. This is published to stay along with readers which has interest in this field of research.
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