History of Sharia Banking Institutions

Although the Koran does not discuss explicitly about financial institutions and at the time of the Prophet Muhammad has no formal financial institutions including banks, but the teachings of Islam has provided basic principles and philosophy that must be referenced in business and economic activities. If it still holds to the basic principles and philosophy given the Quran, then people are empowered to try to find innovation in modern problems, including banking issues.

Because banking is an institution that performs three main functions namely accepting money deposits, channeling money and providing remittance services, basically the function has been implemented when the time of the Prophet even though not managed properly. Therefore, it can be said that substantially the function of the bank when the time of the Prophet already exists.

In the economic history of the Muslims, financing made with appropriate contracts with sharia has become part of the tradition of Muslims since the time of the Prophet. Implementations such as receiving treasury, lending money for consumptive and business needs and making remittances, have been commonly practiced since the time of the Prophet.

Muhammad.SAW, known as the al-amin, believed by the people of Makkah to accepted treasures, so that in the last time before the Prophet emigrated to Madina, he asked Ali r.a to return all the care to his owner. 

Muhammad.SAW 's friend, Zubayr bin al-Awwam, chose not to accept treasure custody. He prefers to accept it in the form of loans. This Zybayr action provides a very valuable lesson, namely by taking the money as a loan, he has the right to use it, and because of the form of a loan, he is obliged to return it intact.

Another friend is Ibn Abbas also send money to Kufa. So did Abdullah bin Zubayr in Makkah who sent money to his brother Misab bin Zubayr who lived in Iraq. The use of checks has also been widely recognized as the business between Syria and Yemen increases, at least twice a year. Even in the days of Umar bin Khattab r.a, he used checks to pay off salaries to those who had the right. With this check, they took the wheat from Bait al-Mal which was then imported from Egypt. In addition, the provision of capital for working capital based on profit sharing, such as mudharabah, musyarakah, muzara'ah, musaqah, has been known among the Muhajirin and the Ansar.

From the above explanation, it is evident that there are individuals who have performed banking functions in the time of the Messenger of Allah, although not yet carry out the overall banking function as it exists today. There is a Sahabt that performs the functions of receiving treasury, performing a borrowing function, carrying out a remittance function, and others providing working capital. 

Based on all the functions that have been implemented by each individual above, then whatever is meant by the concept of banks in this modern era, substantially already exist in Islam.

Currently in the modern world, due to the opinion of the scholars about bank interest, the Islamic state or the majority of the population are Muslims trying to establish a banking institution without interest. So that in the 1940s, a bank without a first. then followed by Indonesia in 1992 which marked the founding of Muamalat Bank. 

Bibliography :
Adiwarman A.Karim (2006),Bank Islam: Analisis Fiqh dan Keuangan, Jakarta: Raja Grafindo Persada  

Iska Syukri (2012), Sistem Perbankan Syariah di Indonesia dalam Perspektif Fikih Ekonomi, Yogyakarta: Fajar Media Press

Sudin Harun & Bala Shanmugam (1997), Islamic BAnking System; Concepts&Applications, Petaling Jaya: Pelanduk Publication