Characteristics of Sharia Banking Products, Wadi'ah Principle, Selling Principle Financing, Financing with Lease Principle, Additional Financing Arrangements

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Characteristics of Sharia Banking Products 

There are special characteristics  in Islamic banking products.  Broadly speaking, Islamic banking products can be divided into three groups. 

• Product Financing (Financing). 

• Distribution of fund products (financing). 

• Service Products. 

Islamic banks do not take a one-size-fits-all approach in offering financing products to their customers, as traditional banks usually do. Adiwarman A Karim (2004) stated that sharia working principles that can be applied in raising public funds in Islamic banking use the principles of Wadi'a h and Mudharabah. 

Wadi'ah Principle

The prevailing Wadi'ah principle is Wadi'ah Yad Dhamana which is used in current account products. Wadi'ah yad dhamanah is not the same as Wadi'ah amanah. Wadi'ah Amanah in principle does not allow guardians (guardians) to use the property of trustees. Meanwhile, in Wadia Damana, the entrusted party (bank) is responsible for the integrity of the entrusted property so that it can take advantage of it. 

Principles of Mudharabah Akad which are regulated in the Investment Principles

The purpose of the Mudharabah agreement is cooperation between the fund owner (Shahibul Maal) and the person in charge of the fund (Mudharib) who acts as the administrator, namely the bank. The owner of the fund as the owner of the funds (storage) in the Islamic bank acts as a pure investor and bears all aspects of the risk and return of the bank. Therefore, depositors are not lenders or creditors to banks as is commonly used in traditional banks. 

In the implementation of the Mudharabah Principle, the depositor or depositor acts as the owner of the capital (shahibul maal) and the bank acts as the manager (mudharib). The funds will be used by the bank to make transactions in the form of Mudharabah or Ijarah contracts. The proceeds (profits) from this effort will be distributed based on a mutually agreed ratio. In Islamic banking, the Mudharabah principle is applied to time deposit products. 

As explained by Adiwarman A. Karim (2004), in distributing funds to customers, fund products distributed or commonly referred to as Islamic bank loans in general can be divided into four groups, namely:

 

Selling Principle Financing (Ba'i) 

The principle of selling is carried out in connection with the movement of ownership of goods (goods). The level of the bank's profit margin is initially set and reflected in the price of the goods sold. The five pillars of buying and selling are Seller, Buyer, Goods Sold, Price and Kabul Permit (Contract / Agreement). Buying and selling transactions can be carried out based on the form of payment and the time of delivery of goods can be divided into three areas: Murabahah Finance, Salam Finance and Istishna Finance. 

Ahmad Gozali (2005:29) argues that Murobahah is a buying and selling transaction with a payment mechanism that can be suspended or paid in installments until the payment is completed, and the payment can be stopped at the end of the period. Paid in full. However, banks usually make installment payments to maintain the bank's financial position. 

Salam is a buying and selling financing where the buyer pays in advance for the goods purchased and the specifications are then handed over. 

Ahmad Gozali (2005:31) states that Istishna is an order-to-order sales transaction, where the buyer orders goods for production and the payment system can be made directly or in stages at the beginning of the order.  Banks usually make installment payments to maintain the bank's financial position.

Financing with Lease Principle (Ijarah) 

The principle of Ijarah is basically the same as the principle of buying and selling, but the difference lies in the object of buying and selling. While goods (items) become the principal of transactions in buying and selling, services (services) become the principal of transactions in ijarah. Ijarah transactions are based on the transfer of profits, not the transfer of property (property rights).

According to the fatwa of the National Sharia Council, an ijarah is an agreement to transfer the right of use (interest) on goods or services with the payment of rent or wages for a certain period of time without precedence of the transfer of ownership of the goods. Therefore, Ijarah does not transfer ownership, only the right of use from the landowner to the tenant. 

Here are the types of goods and services that can be looted. 

• Capital Goods and Capital Goods. 

• Footprint. 

• Cost-based services: tuition fees, university fees, labor costs, hotel and transportation costs. 

Profit Sharing Finance (Syirkah) 

Islamic finance is a product based on the following Profit Sharing Principles. We finance co-managed companies with profit-sharing principles. 

• Mudharabah Funding

• Mudharabah Funding is a joint venture between two parties funded by Shahibul Maal, with Mudharib acting as fund manager, with profits and losses divided as per the original agreement. 

Additional Financing Arrangements

Additional Arrangements are designed to facilitate financing as well as generate profits. This additional contract allows you to claim reimbursement of costs incurred in the performance of the contract, even if its purpose is not for profit. Additional contracts for Islamic banking include hiwalah (ailih debt), rahti (gadaij, qardh, wakalah, kafalah). 

Wakara

Wakara is the transfer of authority from one party to another in the matters it represents. Wakalah can also be interpreted as an agency agreement between two parties (bank and customer). In this agreement, the customer authorizes the bank to perform certain work or services on its behalf. For this reason, the bank has the right to demand compensation in the form of fixed contributions first. 

The provisions of the Wakala Convention are as follows: 

(1) Agent (Person in Charge) Requirements. 

• Must be the rightful owner. 

• Muquriaraf people within reach. 

(2) Agent Requirements

• Talk about the law. 

• You can complete assigned tasks. 

• An agent is a delegated person. 

(3) Representation Issues

• Clearly known by representatives. 

• Not contrary to Islamic law. 

• Can be represented according to Islamic law. 

Ijab qobul

Qardh

Qardh is a loan agreement (payment of funds) to the customer provided that the customer is obliged to return the funds he received to the Islamic Bank at the agreed time. First and before. 

Rahn (pawn) 

Rahn (lien) is an agreement to produce goods of economic value as collateral for debt so that the owner of the goods concerned can bear the debt. Arrahn also means oath (promise). This is a contractual and binding agreement when ownership of securities changes.

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