SUPERVISION OF ISLAMIC BANKING BASED ON LAW NUMBER 21 OF 2011

Abstract

Islamic banks are banks that carry out their business activities based on the principles of Islamic law in muamalah activities based on fatwas issued by the National Sharia Council of the Council of Indonesian Religious Leader. The rapid development of Islamic banking in the national banking system is inseparable from the trust given by the Indonesian people who are predominantly Muslim. To maintain public trust, Islamic banks must be monitored, both the operational system and its compliance with sharia principles and applicable laws and regulations. The problem discussed in this research is how is supervision of Islamic banking based on Law Number 21 of 2011? The method used in this research is normative legal research using the regulatory approach. Based on Law Number 21 of 2011, the Financial Services Authority has the authority to supervise Islamic banks including Islamic bank institutions, Islamic bank health, prudential aspects of Islamic banks, and Islamic bank checks.