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The rate of growth of Islamic banking is very fast, but still many people do not understand the principles that apply in Islamic banking. No wonder if there is a majority of people who still doubt the principles of Islamic banking. The principle is the rule of Islamic law based on agreement between the bank and others to deposit funds and financing activities or other activities in accordance with Islamic law.

Here are five principles embraced by the law arrives Islamic banking system:

1. Payment of loans with different values of the loan value with the predetermined value is not allowed.
2. Provision of funds must also share the profits and losses as a result of the institutions that borrow funds business.
3. In principle Islam does not allow making money from money. Money is only a medium of exchange and not a commodity because it has no intrinsic value.
4. The element of uncertainty or speculation (Gharar) not allowed. Therefore, both parties must know all too well the results of which will they gain from a transaction.
5. Investments should only be given to those businesses which are not forbidden under Islamic law. For example, businesses in the liquor trade should not be funded by Islamic banking.

In the end, the principles of Islamic banking would bring good for the communities as a promising balance its economic system. Islamic banking has been regulated within the range of transactions that are not harmful for both parties. Because if the transaction is detrimental to one party violates the provisions of Islamic law has been used as the foundation of Islamic banking principles derived from Quran and Hadith.

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