The Growth of Islamic Banking in The World and Indonesia

The early history of the early events of the first Islamic Bank in doing is in Pakistan and Malaysia in the years around the 1940s. Later in Egypt in 1963 stood Islamic Bank in the village Rular It Ghamr Bank. These banks operate in rural Egypt and is still small. In the UAE, the new stand in 1975 with Dubai Islamic Bank. Later in the Kwait in 1977 stood Kuwait Finance House which operates without interest. Further back in Egypt in 1978 established the Islamic Bank named Faisal Islamic Bank. This step is then followed by the Islamic International Bank For Investment and Development Bank.

In Cyprus in 1983 stood Faisal Islamic Bank of Kibris. Then at the Malaysian Islamic Bank was born in 1983 with the establishment of Bank Islam Malaysia Berhad and the year also 1999lahir Bank Bumi Putera Muamalah.Di Iranian system of Islamic Banking into effect nationally in 1983 since the issuance Legislation Islamic Banking Act. Then in the Turkish secular state whose ideology was born in 1984 Islamic Bank of encouragement presence Daar al-Maal al-Islamiserta Faisal Finance Institution and began operating in 1985.

One of the main pioneers of the State in implementing a national system of Islamic Banking is Pakistan. Government of Pakistan convert the entire banking system in the country in 1985 into a system of Islamic Banking. 1979, some Earlier in the year's biggest financial institutions in Pakistan have removed the system of interest and start of that year the government Pakistan socialize interest-free loans, especially to farmers and fishermen. 

In Indonesia a pioneer Islamic Bank is Bank Muamalat Indonesia established in 1991, the bank initiated by the Indonesian Ulema Council and government as well as support from the bonds of Indonesian Muslim Intellectuals and some Muslim businessmen. Besides Muamalat Indonesia, now also has attended the government-owned Islamic Bank like  Mandiri Syariah Bank and  Syariah Bank next stand as a branch of an existing conventional banks such as  BNI Bank, Government Bank of West Java. The presence of Islamic Banking was not only done by the Muslim community but also non-Muslims.

The development of Islamic Banking in Indonesia has become the benchmark for the success of the existence of Islamic economics. Muamalat as the first Islamic Bank and a pioneer for other Islamic Banks had already been applying this system amid the proliferation of Conventional Banks. Monetary crisis in 1998 had drowned conventional banks and many were liquidated due to system failure rate. While banks are applying Syariah system can continue to exist and survive. 

The growth of Islamic Banking in recent years Indonesia has increased rapidly ie above 30% in the last five years which is the highest in the world. But Islamic Banking market share of Conventional Banking is still small, only 3.4% as of  July 2011. 

Islamic Banking industry is currently growing rapidly in Indonesia can contribute to national economic growth because  Islamic Banking activity is not regulated by market mechanisms, in addition to Islamic Banking could also encourage creation of stability of the financial system for the banning of activities smelling speculation or shadow banking that separates financial system with the real sector. 

The growth of Islamic Banking in Indonesia can be further increased and grew significantly as long as the supporting infrastructure facilities to promote the program as well as syariah instruments can be realized so that it can compete with Melli Iran Bank  is the world's largest Islamic Bank.