Funds Based On Sharia Free

Abstract

Theuse of sharia-based financial instruments, especially matters related to debt will have an impact on the company's financial structure as well as conventional financial instruments, but the difference is from the concept side which will ultimately affect the calculation formulation that is different from conventional.So there are many differences in Islamic finance with conventional finance.Various financial indicators, such as the total value of assets and the amount of third party funds raised, continued to increase.Likewise, thequality ofperformanceillustrated by the profits recorded by banks and Islamic finance units also experienced positive growth.Menggeliangits activities sharia banking in Indonesia can not be separated from the increased level of public trust to access the services of Islamic banking services.This can at least alsobe illustrated by thelocationof sharia bankingofficesandsharia financingunitswhich are spread inalmost all regions of the country to all overIndonesia.Compared withconventional banking,Islamic banking has the distinction verybasic ie not menaruhmoney as a commodityintrade, the determination of interest rates in the banking transaction is strictly prohibited karena usury, no element of timevalue of money and the remunerationfor the use of funds melaksanakanprinsip profit sharing.In order to shareeducation and Perlindams tothenasabhneed for analisaonthe principles ofshariain Islamic banking practices.