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Case Sharia Banking (chapt. 13)
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Case of Sharia Banking about Zakat
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QUIZ SESSION 131. Explain the meaning of Zakat?
Zakat is one of the five pillars of Islam that is mandatory and obligates every Muslims to
donate a certain proportion of their wealth for charitable causes each year. However, they
must have held a minimum amount of wealth (nisab) for a whole year. Zakat was said to
purify earnings that are over and above what is required to provide the essential needs of a
person or family. The common minimum amount for those who qualify is 2,5% or 1/40 of a
Muslim’s total saving and wealth
2. Explain the role of Islamic banks as zakat recipient institutions?
Banks in general is become an intermediary (liaison) between parties who has excess funds
and the one who need it. Zakat is included into social function of Islamic banks, where it
provides social services to the community including zakat, infaq and shadaqah (both
receiving and giving the ZIS funds), but also qard funds.
Since it is mandatory on all adult Muslims who earn more than a certain threshold, Islamic
banks collect Zakat by deducting it directly at the source. It means if the bank user has more
money than the set threshold for the year, known as Nisab, the banks are legally responsible
to deduct 2.5% of the exceeding amount.
3. Funds from Zakat, infaq and sodakah that are collected by Islamic banks are used
for what purposes? Explain!
Zakat will be given to those in needs such as: poor, the needy, to those who work on
(administering) it, to those whose hearts are to be reconciled, to (free) those in bondage, to
the debt-ridden, for the cause of God, and lastly to the wayfarer. However, zakat can be used
by Islamic banks for cover the direct expenses of the team involved in delivering the Zakat.
4. As a country with the largest Muslim population in the world, the amount of ZIS
funds (zakat, infaq and sadakah) should be abundant and ZIS funds can reduce the
amount of poverty in Indonesia. However, in reality the management of ZIS funds is not
optimal. Give your explanation.
This can be phenomena because several things going around the society, including:
1. The society somehow ignorance or uneducated for what ZIS funds’ are going to be
used for in our country economy.
2. The society did not believe with any of our states institutions that are weak and not
transparent enough.
3. Lack of state’s support to be proactive in the passage of the law on zakat activity.
4. The distribution of zakat only for society’s consumptive needs.
, Gibson et al (1996)
specified three
frameworks for
systematic management
by institution to guide
the activity meet the
requirement. This
framework as
the theory has three
activities namely
planning, organization
and
controlling, while two
activities was added
which are collection
and
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