Developing a Strategy for Islamic Money Market Model to Enhance Quality of Islamic Banking Performance during the Pandemic in Indonesia 2021

Abstract

Islamic banking for the Indonesian people is a concept that has been developed since 1992 but is still relatively new for the Indonesian people, including the Muslim community itself. Based on the fact that the practice of Islamic banking is only at an early stage, it is only natural that the Islamic banking system is still poorly understood by the public, in the end, even though the customers of Islamic banks are not sure about bank management, they still use Islamic banking services. In the view of sharia, money is not a commodity but a tool to achieve added economic value. Without the added economic value, money cannot create prosperity. This is in contrast to interest-based banking where money breeds money, regardless of whether it is used in productive activities or not. Time is the main factor. Meanwhile, in the view of sharia, money will only grow if it is invested in real economic activities. In operational activities, Islamic banking is faced with problems that can become obstacles in achieving its goals, including problems related to a crisis. Basically, Islamic banking has similarities with conventional banking in dealing with risks in business process activities. These risks can be caused by natural disasters, human error and pandemic risks. This research is a literature review which is expected to produce a robust model Islamic money market to enhance quality of Islamic banking in facing and deal with the crisis due to the pandemic.