A Literature Review on Islamic Banking Law: A Comparison with Conventional Banking Law

Idzni Azhani Firdaus, Septriandiva Saraswati, Hj. Lindryani Sjofjan, Farahdinny Siswajanthy

Abstract


Islamic banking and conventional banking have fundamental differences in their principles and operations. Islamic banking focuses on justice, transparency, and risk-sharing, while conventional banking prioritizes efficiency and profitability. This research aims to analyze the comparison between both banking systems, the challenges faced, and their impacts on social welfare and economic stability. Based on the findings, Islamic banking offers a more ethical and sustainable solution, although it is still limited by public understanding and insufficient regulations. On the other hand, conventional banking, while more practical and accessible, often overlooks social and ethical values.


Keywords


Islamic Banking; Conventional Banking; Riba, Risk-Sharing; Sustainability; Social Welfare

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DOI: http://dx.doi.org/10.18415/ijmmu.v12i8.7049

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