Legal Adjustment: A Strategical Step for Boosting Sustainable Development of Islamic Banking (A Comparative Overview Towards Malaysia, Indonesia And Singapore)

It is legal adjustment, one among some key determintants, which affects the rapid or slow develpment of Islamic banking in a particular region. Though sometimes this is neglected in the beginning of the initiation of Islamic banking, but, in turn, it will significantly affect the long run of the progress of Islamic banking. Islamic banking is a new business entity which is very exceptional to its conventional counterpart. Therefore this needs specific treatment from the legal point of view. The spesicific treatment or may be called also as legal incentive is unavoidable in some aspects. Few among those is double taxation, dispute settlement, security (fiduciary), legal documentation, and standardized contract. Legal system which has been established everywhere for decades is designated to cater conventional banking system, and therefore legal adjustment is unavoidable to more friendly welcome there emergence of Islamic banking. The lack of legal adjustment not only may bring about the