The Disclosure of Islamic Ethics in Islamic Banks

Abstract

This research is aimed to acknowledge the disclosure of Islamic ethics in sharia banking business practices. Islamic banks have a different concept of understanding compared to a conventional bank in implementing the practices of collecting and channeling funds. Islamic economic system has stipulated mandatory regulations in every financial transaction of Islamic banks. Finding the balance on implementing business practices and religious orders have become the primary consideration of Islamic banks. The social responsibility as a higher priority has constructed Islamic banks with different ethical identity in contrast to the one conventional bank has. Having the ethical identity grants Islamic banks with a distinguishable unique characteristic. For  the Islamic banks, the compatibility of Islamic ethics in its practices becomes one of the strengths in thriving among the highly competitive banking industry. This research is a textual analysis which discusses Islamic ethics on Islamic banks business. The methodology applied in this research is qualitative descriptive. Based on the findings, it is revealed that sharia banking in Indonesia has not yet been ideal in implementing Islamic ethics in its business practices. Islamic banks show the presence of similarity between Islamic and conventional banks in terms of service behavior.