Behind the deviation of Islamic banks from shariah principles

Moh. Baqir Ainun


This study examines the causes of Islamic banks deviated from shariah principles. It also explores why the Islamic bank deviates from shariah principles. This study used a qualitative method with in-depth interviews with employees and customers of one of the Islamic banks in Sumenep Indonesia. This study was divided into two steps. First, examine whether Islamic bank deviates from shariah principles. Second, examine what causes Islamic banks to deviate from shariah principles. The results of this study found that the causes of Islamic banks deviated from shariah principles are the existence of competition between Islamic banks and the reality of profit targets that must be achieved. The findings of this study contribute to providing information to the public who criticize Islamic banks so that they understand the difficult conditions of Islamic bank to adhere perfectly to shariah principles so that the public do not always blame Islamic bank for deviations committed and do not condemn it.


Cause; deviation; islamic bank; sharia principles

Full Text:



Abdul-Rahman, A., Latif, R. A., Muda, R., & Abdullah, M. A. (2014). Failure and potential of profit-loss sharing contracts: A perspective of New Institutional, Economic (NIE) Theory. Pacific-Basin Finance Journal, 28, 136-151.

Ahmad, A. R. Y., Muhammad, P., & Banking, E. (2009). Tawarruq, Its Concepts, Its Practices And Its Economics Implication On Its Promotion By Islamic Banks. Alexandria: University Egypt.

Ahroum, R., & Achchab, B. (2017). Pricing of Sukuk Musharakah with joint venture as underlying, beyond the use of PLS ratio. Journal of Islamic Accounting and Business Research, 8(4), 406-419.

Baloria, V. P., & Heese, J. (2018). The effects of media slant on firm behavior. Journal of Financial Economics.

Bennett, B., Bettis, J. C., Gopalan, R., & Milbourn, T. (2017). Compensation goals and firm performance. Journal of Financial Economics, 124(2), 307-330.

Boukhatem, J., & Moussa, F. B. (2018). The effect of Islamic banks on GDP growth: Some evidence from selected MENA countries. Borsa Istanbul Review, 18(3), 231-247.

Chong, B. S., & Liu, M.-H. (2009). Islamic banking: interest-free or interest-based? Pacific-Basin finance journal, 17(1), 125-144.

Creswell, J. W. (2007). Second Edition Qualitative Inquiry & Research Design Choosing Among Five Approaches. United States of America: SAGE Publications.

Echchabi, A., & Aziz, H. A. (2014). Shari’ah issues in Islamic banking: a qualitative survey in Malaysia. Qualitative Research in Financial Markets, 6(2), 198-210.

Emilia, M. A. (2011). Tinjauan Hukum Islam terhadap Penerapan Bagi Hasil dalam Akad-Akad Pembiayaan BMT “Forum Ekis” Sleman. (Skripsi), Universitas Islam Negeri Sunan Kalijaga Yogyakarta.

Farooq, O. (2014). Shariah-compliance and value of analysts' recommendations: evidence from the MENA region. Journal of Islamic Accounting and Business Research, 5(1), 61-76.

Fatwa Dewan Syariah Nasional. No: 02/ DSN-MUI/ IV/2000 Tentang Tabungan (2000a).

Fatwa Dewan Syariah Nasional. No: 03/DSN-MUI/IV/2000 Tentang Deposito (2000b).

Fatwa Dewan Syariah Nasional. No: 07/DSN-MUI/IV/2000 Tentang Pembiayaan Mudharabah (Qardh) (2000c).

Grassa, R., & Gazdar, K. (2014). Law and Islamic finance: How legal

origins affect Islamic finance development? Borsa Istanbul Review, 14(3), 158-166.

Gundogdu, A. S. (2016). Islamic electronic trading platform on organized exchange. Borsa Istanbul Review, 16(4), 249-255.

Hamza, H., & Kachtouli, S. (2014). Competitive conditions and market power of Islamic and conventional commercial banks. Journal of Islamic Accounting and Business Research, 5(1), 29-46.

Huang, J. (2018). The customer knows best: The investment value of consumer opinions. Journal of Financial Economics, 128(1), 164-182.

Hummel, D., & Goud, B. (2017). An esham-ijara structure in the United States? Journal of Islamic Accounting and Business Research, 8(4), 455-467.

IAI, I. A. I. (2016). Standar Akuntansi Keuangan Syariah Efektif Per 1 Januari 2017. Jakarta: Dewan Standar Akuntansi Syariah Ikatan Akuntan Indonesia.

Imam, P., & Kpodar, K. (2013). Islamic banking: how has it expanded? Emerging Markets Finance and Trade, 49(6), 112-137.

Khan, F. (2010). How ‘Islamic’is Islamic banking? Journal of

Economic Behavior & Organization, 76(3), 805-820.

Khan, M. (2011). Islamic Banking Practices: Islamic Law and Prohibition of Ribā. Islamic Studies, 413-422.

Khoutem, D. B. J. (2014). Islamic banks-Sukuk markets relationships and economic development: The case of the Tunisian post-revolution economy. Journal of Islamic Accounting and Business Research, 5(1), 47-60.

Mansor, F., Bhatti, M., & Ariff, M. (2015). New evidence on the impact of fees on mutual fund performance of two types of funds. Journal of International Financial Markets, Institutions and Money, 35, 102-115.

Mokni, R. B. S., Echchabi, A., Azouzi, D., & Rachdi, H. (2014). Risk management tools practiced in Islamic banks: evidence in MENA region. Journal of Islamic Accounting and Business Research, 5(1), 77-97.

Rashid, A., & Jabeen, S. (2016). Analyzing performance determinants: Conventional versus Islamic banks in Pakistan. Borsa Istanbul Review, 16(2), 92-107.

Shawtari, F. A., Saiti, B., Razak, S. H. A., & Ariff, M. (2015). The impact of efficiency on discretionary loans/finance loss provision: A comparative study of Islamic and conventional banks. Borsa Istanbul Review, 15(4), 272-282.

Trinugroho, I., Risfandy, T., & Ariefianto, M. D. (2018). Competition, diversification, and bank margins: Evidence from Indonesian Islamic rural banks. Borsa Istanbul Review.

Ullah, H. (2014). Shari’ah compliance in Islamic banking: An empirical study on selected Islamic banks in Bangladesh. International Journal of Islamic and Middle Eastern Finance and Management, 7(2), 182-199.

Yaya, R., Martawireja, A. E., & Abdurahim, A. (2014). Akuntansi Perbankan Syariah: Teori dan Praktik Kontemporer berdasarkan PAPSI 2013 edisi 2. Jakarta: Salemba Empat.

Zaman, Q. U., Hassan, M. K., Akhter, W., & Brodmann, J. (2018). Does the interest tax shield align with maqasid al Shariah in finance? Borsa Istanbul Review.



  • There are currently no refbacks.

The 6th International Conference on Business and Banking (ICBB) VI

Abstracting & Indexing



Hasil gambar untuk ccby logo

This work is licensed under a Creative Commons Attribution 4.0 International License.