Islamic Banking Education

Assalamualaikum Sahabat Hasanah, what Sahabat Hasanah want to know is What is a Bank and how do Banks work? So, a bank is Business Entity that collects funds from the public in the form of savings and channels it back to the community in the form of financing and by providing services for the channeling of payments as well as the circulation of money. For a more complete explanation, Sahabat Hasanah, let’s watch the following video.

Assalamualaikum Sahabat Hasanah, so, what actually are the Differences between Islamic Banks and Conventional Banks? Islamic Banks carry out their business activities based on sharia principles. Conventional Banks leverage interest. At a Sharia Bank, both profit and the risk of loss are shared by the bank and the customer, while at Conventional Banks, losses are only borne by the customer. Furthermore, at an Islamic Bank there is Sharia Board Supervisor (DPS) that assesses sharia banking products and operational processes to ensure that they are sharia compliant. Let's look at the following video for more information.

Assalamualaikum Sahabat Hasanah, there are also differences in terms of internal operations between Islamic Banks and Conventional Banks. The difference is that Sharia Banks avoid usury. When you borrow money from Islamic banks, you cannot borrow excess funds. This is because usury and charging of interest is haram in Islam. Islamic Banks work on the principle of purchasing and buying when it comes to financing as exemplified by the teachings of the Prophet Sallallahu Alahi Wasalam on the principle of purchasing and selling. Let's look at the following video for more information.

Assalamualaikum Sahabat Hasanah, another activity done by Islamic Banks is fund collection through savings products, which are distinctive at Islamic banks as customers can make savings with or without profit sharing. Profit sharing at Islamic banks is based on the level of income of the bank. Let's look at the following video for more information.

Assalamualaikum Sahabat Hasanah, for Sahabat Hasanah who wish to save money at Bank BNI Syariah, we offer various types of savings and financing products, namely: Al Wadiah (deposit only), Al Mudharabah (an agreement of purchasing and selling between the Bank and the customer). Let's look at the following video for more information.