Analysis of the Profit and Loss Sharing Principle in Islamic Banking Investment Deposits (A Comparative Legal Study of Several Countries)

10.2478/bjlp-2023-00000244

Abstract

The growth of Islamic banking in several countries especially Indonesian, Malaysian and Egypt is growing very rapidly, statistics show that Indonesian and Malaysian have become one of the centre of the development of the Islamic financial industry. Indonesian and Malaysian as countries in this region which are the dynamo of the development of the Islamic banking industry among ASEAN countries, this condition encourages other Southeast Asians to participate in the development of the Islamic banking industry. Based on this study examines 2 (two) problems namely how the principle of profit and loss distribution of investment funds of Islamic banking deposits in comparative studies of laws of several countries and how the settlement of disputes of investment funds of Islamic banking deposits in comparative studies of laws of several countries. Both of these constraints are examined using legal comparison theory and solutions to resolve if Islamic banking disputes occur in several countries. The approach used is normative with a comparative method of law in data collection techniques, namely by analyzing documents that are relevant to the research topic. The conclusion in this study is that Islamic banking deposit investment funds in several countries especially in Indonesian, Malaysian and Egypt still use the principle of profit sharing and dispute resolution of Islamic banking deposit investment funds arising from Islamic financial transactions in Indonesia, Malaysian and Egypt certainly needs sufficient attention from their respective governments.