Good Regulation, Sharia Strong Economy
Posted April 24, 2010on:
Banking and Islamic financial institutions proved to be not affected by the global crisis. Sharia economics expert from the International Centre for Education in Islamic Finance (INCEIF) Malaysia Datuk Syed Othman Alhabshi asserted, none among the banking and Islamic financial institutions in the world at-large bail out because of loss.
Therefore, he said, currently the IMF (International Monetary Fund), World Bank, and global banks that have been relying on conventional systems also began to develop and implement sharia system.
“The system that avoids interest and usury should be developed so it could be a solution to the crisis caused by the practice of conventional systems,” he said when visiting the Java editor of Post Sunday night (5 / 4).
According to him, development is also not only by learning and encourage others to apply. “But, also go through the act or practice immediately,” he said.
Alhabshi said, excess sharia system lies in the relationships among the stakeholders that are based on functional pattern and fair agreement. “So, the position of both parties together. All of the benefits, problems, and risk borne. Conventional system will not work without usury,” said chief academic officer / Dean’s head, takaful and wealth planning INCEIF it.
Ideally, he said, before practice, there is the underlying regulations. This is so that the practice was not out of line. “In Malaysia, Islamic economic practices quite well. Share Islamic banking there for about 16-20 percent. Among other things, its development is supported regulation that is good enough,” he explained.
Regulations relating to the shari’a in Malaysia, he added, have been around a long time. Started publishing regulations on the deed of Islamic banks in 1982, and legislation about the Islamic banks next year.
Furthermore, rules about the practice of Takaful (Islamic insurance) was published in 1984. Sarekat Islamic legislation published in 1985. “After that, just what made a serious practice regulations. Then, again developed to meet the needs of the time without leaving the base, Quran,” he explained.
Due to the development of sharia in Malaysia so rapidly, he said, some economic experts on the Middle East was once considered the practice of exceeding the limit. But, he explained in a forum in Dubai, United Arab Emirates that the economy of sharia should be implemented with serious practice. “Without good practice and optimal, and only such theory in the Middle East, Islamic economy will not develop optimally,” he said.
In Indonesia, the share of Islamic banking is still about 2 percent. According to him, it happened because of the support of less regulation in Indonesia remains strong. “Properly prepared and reinforced to support the regulation. In addition, should be maximized direct experience of the practice of sharia policy makers,” she explains.
He gave an example, the National Shariah Council authorized the issuance of one legal source for Islamic financial institutions must be derived from the theory of fiqh among the experts and experienced in practice in the field. “If the practice is less, they are just idealistic and would complicate the economic practitioners of sharia,” he said.