Sharia Compliance on Murabaha Financing

Abstract

This research aims to find out how the sharia compliance supervision on murabaha financing, as well as things become supporters and obstacles in fulfillment of sharia principles on murabaha financing at BMT. This study used a qualitative descriptive method. The data used is Primary data were obtained from interviews. Determination of data sources using purposive sampling method by interviewing people who were directly involved in the practice as well as the supervision of murabaha financing. Mechanical testing of the credibility of the data using triangulation theory and triangulation source. Monitoring compliance with sharia on murabaha financing is more focused on the Sharia Supervisory Board (SSB), but oversight has not done optimally. As for the supporting fulfillment of sharia principles among which the active role of SSB, and the training given to employees about Islamic principles, while obstacles in fulfillment of sharia is the understanding and awareness of the BMT and the client is still low for implementing murabaha financing that is true to the principles of Islam.

Issues and Challenges in Financing the Poor: Lessons Learned from Islamic Microfinance Institutions

“…Research on BMT Yogyakarta found that BMT in general has implemented internal control, but there are still weaknesses in the authorization procedures. From 19 samples, only 11 BMT has SSB [17].…”

Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators

“…A leverage ratio is a tool for assessing a company's leverage. Overuse of debt puts businesses at risk as they fall into the extreme debt category, which means that businesses will end up in high debt, and the debt burden will be difficult to resolve (Mediawati, 2016). Liquidity Ratio is the ratio used to interpret short-term financial position.…”

Members’ Behavior Towards Baitul Mal Wa Tamwil

“…BMT is a business organization that also play a social function and role of the BMT as follows: As an investment manager, to play its role as an agent or as a liaison for the owners of the funds; As an investor, if the source of the funds obtained from members or loans from other parties are then managed in professional and effective without the special requirements of the owner of the fund; Social function, providing better social services to members and dhua'fa (Mediawati and Agustami 2016).…”