Active Functions From Translators In Syariah Banking

ACTIVE FUNCTIONS FROM TRANSLATORS IN SYARIAH BANKING In terms of asset functions related to financial management in Sharia banking, I believe that Sharia banks have an intermediary role that connects fund owners with real or entrepreneurs. One of the main purposes of being a bank is to fulfil this function of intermediation. Therefore, Sharia banks must have a system that allows them to do so. This is what is known in Sharia banking as the concept of asset and liability management. Asset and Liability Management is a set of actions and procedures intended to oversee financial positions. The Objective Of ALMA The objective of ALMA is to maintain a measurable bank health with CAMEL, anticipate external changes such as inflation, interest rates, and exchange rate changes, and ensure that banks obtain optimal net profits through proper asset control. One of the active purposes in the financial management of sharia banks is to keep the value of the currency stable, preventing inflation. Inflation is a state of a country's economy in which prices of goods and services tend to rise in the long term. This is because of the imbalance between the flow of money and goods. If the sharia bank's financial management assets function properly, the value of the currency will not fall, so the price of goods or services will not rise, and this will prevent damage to the country's economy. In addition, it can increase net income, which is also known as the positive difference of total income (operations and non-operations) by total cost (operation and non -operation) in a period of time after deducted income taxation. Thus, the growth of sharia banks became faster. The asset function in the financial management of sharia banks is to maximize bank profits and yields to shareholders in the long term, taking into account the needs of liquidity and prudence. Lastly, in my opinion, the function of the asset is to maximize the income of the Sharia bank so that the sharia bank gets the greatest profit and also to keep the risk from exceeding the tolerable limit. The term "Mudharabah two doors" refers to the basic principle used by the sharia bank to implement this idea. The sharia bank will act as a liability liability and will be responsible for third-party customer funds. On the asset side, the bank will act as the Shahibul maal, and the financing client will act like the Mudharib. After expanding, sharia banks began to use additional transaction schemes involving mutual funds and deposits on the side of liabilities. Shariah banks can also use credit, rent, sale and other assets. ALMA Is An Important Component Of The Banking Idea ALMA is an important component of the banking idea, including Sharia banking. Managing the financial balance sheet effectively and organizedly is crucial to any sharia bank. Each bank must have an ALCO Committee (Asset and Liability Committee), which manages ALMA. ALCO works as follows: a. Review reports on liquidity risk, market risk, and financing management. b. Find a balance sheet management problem that could affect the bank's performance. c. Examine the Third-Party Funding Strategy (TFF) and profit expectations on the financing side. d. Check the bank's contingency plan. In this sharia bank, a Division or Department called the Treasury manages assets and liabilities. The Treasury function ensures that the intermediation process runs smoothly andins the liquidity of the Sharia bank, which means that the sharia bank can meet its obligations in the short term.