SHARIA MEDIATION IN ISLAMIC BANKING DISPUTES: STRATEGIES FOR STRENGTHENING LEGAL PROTECTION FOR CUSTOMERS

Maria Rosalina

doi:10.3059/insis.v0i0.29146

SHARIA MEDIATION IN ISLAMIC BANKING DISPUTES: STRATEGIES FOR STRENGTHENING LEGAL PROTECTION FOR CUSTOMERS

Maria Rosalina

Abstract

Sharia mediation constitutes an alternative dispute resolution mechanism that integrates Sharia principles with conventional mediation techniques, grounded in the values of “sulh” (amicable settlement) and “tarāḍin” (mutual consent of the parties). This study examines the role of Sharia mediation in protecting the legal rights of customers in Islamic banking disputes and formulates strategies for strengthening its implementation. This study uses a normative legal research method, analyzing primary and secondary legal sources through literature review and descriptive-qualitative analysis. The findings indicate that Sharia mediation offers an efficient and cost-effective process and delivers equitable solutions based on the principles of “sulh” and “tarāḍin”. However, its effectiveness remains constrained by information asymmetry, unequal distribution of mediator resources, and low levels of legal literacy among customers.The study concludes by emphasizing the need for an integrative strategy. This strategy should include strengthening the regulatory framework, standardizing procedures, improving mediator resources and access to legal aid,as well as educating customers. These coordinated measures are crucial to optimizing Sharia mediation as a tool for legal protection within the Islamic banking system.

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DOI: https://doi.org/10.3059/insis.v0i0.29146

DOI (PDF): https://doi.org/10.3059/insis.v0i0.29146.g14983

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