The Effectiveness of Business Ethics Implementation in Islamic Economic Law on Islamic Banking

摘要

Islamic bank is a bank whose activities leave usury issues. Therefore, avoiding interest which is considered usury is one of the challenges for the current Islamic world. The literacy index of Islamic banks in Indonesia has only reached 6.63 percent. The level of literacy or public understanding of Islamic finance is still lower than the level of inclusion. This literacy index shows how much public understanding of Islamic banks including their products and services. Currently, Muslim economists have devoted great attention to finding ways to replace the interest system in banking and financial transactions that are more in line with business ethics and Islamic economic law. Islamic economic law is a sharia economic law system that covers the way and implementation of business activities/ business ethics based on sharia principles. The discussion of business ethics in Islamic economic law is expected to be able to provide understanding to the public about Islamic banks and their effectiveness. The objectives of the research are to (1) find out the business ethics implementation in Islamic economic law at Bank Syariah Mandiri Branch of Sukarno Hatta Malang, and (2) to find out the effectiveness of the business ethics implementation in Islamic economic law at Bank Syariah Mandiri Branch of Sukarno Hatta Malang. The research findings found that business ethics in Islamic economic law is implemented at Bank Syariah Mandiri Branch of Sukarno Hatta Malang by implementing usury elimination, the principle of justice, cooperation, and trust, and conducting legal business transactions (the financing types are based on sharia law). In addition, the business ethics implementation in Islamic economic law at Bank Syariah Mandiri Branch of Sukarno Hatta Malang is considered effective due to the loyal customers based on the increased profits and total assets.