ANALYSIS OF ISLAMIC ECONOMY ABOUT COLLATERAL IN MUḌᾹRABA FINANCING AT SHARIA BANKING

Muḍāraba is the characteristic product of sharia banking, but, long by long time goes by, sharia banking not interesting enough to more provide muḍārabah financing, because, muḍārabah financing has a higher risk if comapared with other products of sharia banking such as murabaha, ijara, musyraka, murabaha etc. Based on that matter, why sharia banking asks the collateral to the customer as the tool of prudential banking principle. It is in accordance with Fatwa of The National Sharia Committee No. 07/DSNMUI/IV/2000 that was mentioned, sharia banking has to ask collateral to the customer as the guarantee of muḍāraba that had received. This research has the purpose to know how the position and the function of collateral in muḍāraba financing. To achieve the purpose of this research the author used qualitative research method especially library research, while the objectives research are books, journals, articles, previous research, and other literature that has related with this research. Based on the deeply analysis that was done by the author, it can be concluded that the position and function of collateral in muḍāraba financing is to create welfare for all the parties who include in this muḍāraba financing contract (sharia banking, the investor, and the customer), and also avoid from Moral hazard and Asymmetric Information. The author analyzed this problem of research by maqāṣid asy-syari‟ah approach as the Islamic economic values