ABSTRACT 
The development of Islamic banking system in Conventional Banking industry is to
offer those alternatives banking system for people in need of banking services without having
to worry over the issue of "interest" Sharia. The Banking system established have aim to
promote and develop the application of the principles of Islam and its traditions into the
financial transactions and kind of banking transactions. Within Banking business based on
Sharia principles was Banks who based products and their implementation of Islamic Law
(Qur'an and Hadist) whereas Sharia Supervisory Board will supervise the operational
activities and provide some input to the banking system based on Sharia principles in order to
ensure that the Bank is not involved in the elements that are not in accordance with the
principles of Islam.
One of the Sharia Principles in Banking Practice is Al-Mudharabah or profit sharing
principle, which the Bank and its customers can carry out cooperation in the conduct of a
business. Bank as the owner of the funds (Shahibul mal) provides funds to a business that
will be managed by the customer (Mudharib). In the pre-contract both have agreed ratio will
be distributed from the profits to be gained from the advantages to be gained from his efforts.
Keywords: Islamic Banking Agreement, Principle of Al-Mudharabah