Prospects of sharia banks in the future.
The prospect of sharia banking in the future is very bright, especially considering its huge market share. Thus, it is normal that after that many conventional bank's open sharia branches directly or through the conversion of conventional branches into sharia branches. While at the sub-district level, we also have dozens of BPRS that already operate in all regions of Indonesia.
The growth of Sharia banking in Indonesia in the last decade is very rapid. This subject is evident from the continued development and development of the Islamic banking industry in the country, as well as the continued high level of confidence of citizens. Citizens long for various economic institutions that can realize economic justice to narrow social inequalities. The economic crisis that has been established since mid-1997, which is still ongoing until now, has continued to be a wake-up call for us to seek and improve the alternative economic system, which is able to avoid the formation of concentrations of wealth in the hands of a handful of people.
The current situation requires strong support from various parties so that the economic system sourced from Islamic sharia can continue to develop and grow in Indonesia. The growth of Sharia banking is a very interesting and unique phenomenon because this phenomenon is intertwined even when the state of the national economy lies in an alarming condition.
Although when viewed from the volume of Sharia banking business when compared to the totality of the total volume of national banking business, up to its value is still relatively small, is Rp2.5 trillion. On the contrary, the total volume of the national banking business in totality reached Rp 1087 trillion. If we present, until the volume of sharia banking business reaches the figure of 0.23 percent.
For the result abdul gader and al-ghahani study, in 1990, there is a comparison between the role of conventional commercial banks and Islamic banks in economic development. Among others, as follows:
1. Islamic banks tend to maintain a greater ratio between cash and deposits compared to conventional banks. This subject tells us that Islamic banks are more conservative than conventional banks, or in other words, they lack the opportunity to lend their funds.
2. The percentage of equity in total assets is greater in Islamic banks than conventional banks. Similarly, the ratio between loans with own capital and between loans and deposits is greater in Islamic banks when compared to conventional commercial banks. This shows that Islamic banks are tied to their capital in lending, which means that they could have difficulty attracting deposits.
4. Islamic banks display a greater profit ratio than conventional banks engaged in the same country. This is a fact of greater gains in net worth or capital income from legacy as well as the ratio of total operating income to total assets. Fourth, Islamic banks are more effective than conventional commercial banks, as tested by the ratio of non-interest expense to gross revenue.
But there are problems in sharia banks that coincide with the development era, among others:
1. lack of deposits
Sharia-operated banks cannot accept deposits from people who want to find their profits without bearing any effect. Because sharia is suitable, sharing profits is not allowed without sharing effects. This type of depositor is usually more likely to deposit money to banks that operate with an interest/ usury system or on the stock market.
2. Excessive liquidity.
Surely Islamic banks are more likely to maintain a large ratio between cash and deposits when compared to conventional banks. This is trying to estimate the withdrawal of savings accounts that customers try at any time without prior notice. After that, not all potential Islamic bank customers agree to lend their money based on the principle of musyarakah or partnership. Usually, customers are happier to borrow funds on the basis of mudharabah, or even moreover borrow from conventional banks with an interesting system. On the contrary, Islamic banks want to be happier–with risk alibi– investing on the basis of musyarakah rather than mudharabah, because in mudharabah, if a business faces losses until the bank wants to bear a greater burden of losses than its partners. The conservative behavior of investors and banks is about to bring about liquidity delays. Islamic Banks also tend to hold more of their reserves, either in their own cash or central banks, as protection against losses and protect the satisfaction of their potential customers.
3. Cost as well as profitability.
Islamic Banks work with very strict provisions as well as sorting out investments that are halal and sharia-only. The implication is that Islamic banks are obliged to carry out supervision and sometimes directly manage the operation of a project they fund. This is trying to reduce managerial spending. As a result, Islamic banks are obliged to shoulder bonus payments that do not have time to book interest-based banks. Islamic banks must also be able to minimize the ability to lose their young investments and secure a greater level of profit than usury banks. This has led to Islamic banks being encouraged to look for projects that quickly distribute profits. Long gestation projects, as well as infrastructure projects, are less attractive projects for Islamic banking, where Islamic banks are obliged to pay large profits each year on deposits.
4. loan funding problems for consumption.
Islamic banks sometimes struggle to provide loans that are consumptive. This is due to the limited funds that can be lent without profit. After that, Islamic banks that exist at this time are still difficult to raise funds zakat, infak, or sadaqah on a large scale, while the zakat fund is a very remarkable ability, and can be used as one of the sources of loan funding for consumptive purposes. Fifth, there are still at least human resources that comprehensively control all matters related to the Islamic banking industry. So in practice, often intertwined deviations- deviations of transaction activities that are not compatible with sharia.
conclusion:
Sharia central banks that are again goaded by the government are indeed prospects for the future. But the government must address the issues I have described above. What's more, Indonesia is a majority Muslim country. With the sharia central bank, I think it is very good because it is in accordance with Islamic sharia banking rules.