NAME : ERWIN SHOLI PUTRA ID :1111082100010 Differences Islamic Banks With Conventional Banks The fundamental difference between Islamic banks from conventional banks in general the two concepts n the camely the system concept and the concept of reward system. 1. Difference between conventional banking system concept and the Islamic bank can be seen in the following comparison table below. ISLAMIC BANKS CONVENTIONAL BANKS Based on the profit margin Using the device of interest and or for the results Profit dan falah oriented Profit oriented Relationships with customers Relationships with customers in the form of partnership in the form of the relationship relationship of debtor - creditor Users of real funds Creator of money suplly Conduct an investment - an Investment halal and haram investment that only halal mobilization and There is no Sharia disbursement of funds shall be Supervisory Board, or the like in accordance with Islamic law are supervised by a Shariah Supervisory Board 2. Difference between the concept of return of Islamic banks use profit-sharing system and the conventional banks are using the system of interest can be seen in the following table INTEREST (CONVENTIONAL PROFIT-SHARING (ISLAMIC BANKS) BANKS) Determination of interest The determination of the ratio made at the time the contract of profit sharing at the time without referring to the profit the contract was made with and loss.. reference to the possibility of profit and loss. The determination of the ratio The magnitude of the ratio of of profit sharing at the time profit sharing is based on the the contract was made with amount of profits earned. reference to the possibility of profit and loss. fixed interest payments as For keunungan results promised without any depending on the project. consideration of whether the Were it not for the benefit project being undertaken by ditanggng loss will be shared the client profit or loss.. by both parties. Total interest payments are The number of profit-sharing not increased or even doubled increases with the increase in the amount of benefits the total revenues. economy is "booming" The existence of interest is There is no doubting the doubtful (if not condemned) legitimacy of profit-sharing. by all AGMA including Islam.