THE URGENCY OF TA'ZIR IMPLEMENTATION IN SHARIA BANKING

Abstract

This study aims to see the urgency of implementing ta'zir in Islamic banking. Ta'zir is a form of sanction given to individuals or groups and institutions in the event of a violation that has been agreed upon. The provisions and forms of sanctions do not exist in Islamic law. Thus, there are pros and cons when applied to certain fields such as Islamic Financial Institutions. Because the mechanism and form are not explained. The application of ta'zir in Islamic banking refers to the provisions of the DSN-MUI fatwa No. 17/DSN-MUI/IX/2000 while the sanctions referred to in the regulation are sanctions for customers who can pay, but deliberately delay payments. This study is qualitative in nature by using library data sources. Data collection techniques are carried out using literature studies related to the object of research in the form of primary, secondary, and tertiary legal materials. The method used in this research is descriptive analysis. The urgency of implementing ta'zir in Islamic banking, especially for financing customers by the DSN-MUI fatwa criteria, is an effective rule to discipline and provide a deterrent effect to those who violate it. As an intermediary institution, of course, banks do not want and bear the losses arising from customer negligence or intentional in carrying out business contracts and transactions, so the regulation is made as a preventive measure and anticipatory action.