Function of Islamic Banks

1. Investment Manager

Islamic banks can manage the investment of customer funds by using contract  Mudaraba or as an investment agent.

2. Investor

Islamic banks can invest its own funds as well as customer funds entrusted to it by using the tools of investment in accordance with Shariah. The advantage gained is divided proportionally according to the agreed ratio between banks and lenders.

3. Providers of financial services and payment of traffic

Islamic banks can conduct banking services such as banks non-Islamic as long as not contrary to Islamic principles.

4. Bearer of Social Function

Islamic banks can provide social services in the form of zakat fund management, infaq, Sadaqah, and benevolence loan (qardhul hasan) in accordance with applicable regulations.

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