| Summary: |
The Islamic Banking Industry is growing rapidly in many countries, yet
some important problems are yet to be faced. This includes the
perception of some Muslim societies towards Islamic banking
operations, accounting issues and particularly, in regard to the industries
product portfolio. In the case of Indonesia – but perhaps also in the
larger context – there has been concerns raised about the imbalance of
product portfolio [Adnan 2003; 2005, Tohirin 2003, Muhammad 2005].
It is commonly known for example that the murabaha product has
dominated product portfolio since the beginning of the industry’s
operations. Although this issue is not related to fiqh concepts, many are
concerned that product portfolio imbalance will cause an unevenness
between the monetary or financial sector and the real sector of
businesses. In other words, the situation will not reflect the notion of an
Islamic economics concept, which is concerned about balance and
harmony among all economic sectors. This paper offers a solution to this
particular problem, with a view towards implementation of an Islamic
economy.
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