Basic Principles of Islamic Bank Operations

Abstract

Islamic banking exists as an alternative financial system that operates based on Islamic values and avoids the practices of usury (riba), gharar (gharar), and maisir (gambling). This study aims to explain the basic operational principles of Islamic banks, which serve as the main foundation for implementing Sharia-based financial transactions. The discussion focuses on five main principles: Al-Wadiah (deposit), Syirkah (profit sharing), Al-Tijarah (sale and purchase), Al-Ijarah (rent), and Al-Ajr wal Umulah (fee/service) . The writing method is carried out through a literature review sourced from muamalah fiqh references and contemporary Islamic accounting theory. The results of the study show that each principle has a different but complementary contract mechanism in creating a fair, transparent, and real economic activity-oriented financial system. The application of these principles not only strengthens the unique characteristics of Islamic banks but also supports the goals of Islamic economics in realizing justice and the welfare of the people. Overall, the basic operational principles of Islamic banks reflect the integration of commercial functions and moral-spiritual values in a modern financial system.

Keywords: Sharia Bank, Operational Principles, Sharia Contract, Al-Wadiah, Syirkah