Consumer & Retail Banking
Consumer & Retail Banking

5 General Terms which must be known in Islamic Banking Trade Part 1

Currently the Islamic banking is already attached to our daily lives, but many special trade terms are not yet known. This time we will discuss some of the terms that are often used, let us check together!

Sharia banking can be defined as a developed banking system were implemented based on the principles of sharia (law) of Islam, and its operation is based on the provisions of the Quran and Hadith. Bank Muamalat Indonesia Tbk became the pioneer of Islamic banking in Indonesia (link to:, which was established on 24 Rabius Thani 1412 H or November 1, 1991, initiated by the Council of Ulemas Indonesia (MUI) and the Government of Indonesia.

In achieving its mission of Bank Muamalat Indonesia (link to: Tbk, namely:
"Building a superior Islamic financial institutions and sustainable with an emphasis on entrepreneurial spirit based on the precautionary principle, the superiority of Islamic human resources and professional and innovative investment orientation, to maximize value to all stakeholders."

This time, Bank Muamalat Indonesia Tbk provides general sense that is often used in the terms of trade in Islamic banking, among others:

1. Akad
Bond or agreement between the customer and the bank linkage Ijab (statement bonding) and Kabul (acknowledge receipt of a bond) in accordance with the will of the law that affect the object of the engagement, such as the opening of a deposit account agreement (link to:
or a financing agreement (link to: 

2. Margin
The amount of profits agreed between the bank and its customers on financing transactions with sale and purchase agreement (murabaha). Margin financing is fixed (fixed) does not change throughout the financing period.

3. Nisbah
The share of between customers and banks on funding and financing transactions with a contract of profit sharing (Mudaraba and Musharaka).

4. Murabahah
Purchase contract where the price and profit agreed between seller and buyer. The type and amount of goods described in detail. Goods are delivered after a sale and purchase agreement and payment can be made by installment / installments or all at once. In Islamic banking contract is used for mortgage financing.

5. Mudharabah muqayyadah
Akad done between the owners of capital to businesses that are determined by the investors (Shahibul Mal) to the managers (Mudharib), which agreed profit sharing ratio at the start to be shared, while the loss is borne by the owners of capital. In the terminology of Islamic banking is commonly called Special Investment. Examples of this contract is between the customer and the bank's depositors. Similarly, a brief explanation of common terms on trade in Islamic banking, Bank Muamalat Indonesia Tbk, hopefully with the explanations add to their repertoire or repertory vocabulary Indonesian Society needs help in performing activities of daily Islamic banking. To see the products of Bank Muamalat Indonesia, please visit the product page here (link to:

PT Bank Muamalat Indonesia Tbk was named Best Islamic Bank in Indonesia 2009 by Islamic Finance News (Kuala Lumpur), as the Best Islamic Financial Institution in Indonesia 2009 by Global Finance (New York) as well as the Best Islamic Finance House in Indonesia 2009 by Alpha South East Asia (Hong Kong).

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