LETTER OF CREDIT (LC) DALAM PERSPEKTIF FIQH DAN ALTERNATIF LC DALAM BANK SYARI’AH

Abstract

Fiqh Islam has characteristics that are always relevant to be applied in every changing era, because it has a solution to the problematic mu`amalah contemporary. Letter of credit is one of conventional bank products in contemporary mu'malat which we need to study fiqh law, whether it can be justified syara 'or not.

This article discusses the substance and application of the “Letter of Credit/ LC”, then reviewing on the fiqh law, because it is said in a rule "al hukmu 'ala syai'in far'un' an tashowurihi" (law against a problem is part of the description). Next we will discuss alternative “Letters of Credit/ LC” practices offered by Islamic banks, because Allah does not forbid anything except to give a
halal and better substitute that can benefit humankind in the world and the hereafter
Keywords: Letter of Credits, Fiqh Law