Relationship of Zakat, Sharia Bank, and Poverty: A Theoretical Exploration

Abstract

This article analyzes the collaboration of zakat management opportunities with Islamic banks. Productive zakat is realized to have an important role in alleviating poverty than consumptive zakat. As an Islamic-based institution, Islamic banks can manage zakat funds with usury-free bank products. Healthy Islamic banking institutions and organizations will be able to manage zakat professionally. The use of qualitative methods is carried out to produce a model of zakat management with the concept of Islamic banking through the process of understanding the concept of zakat, Islamic banking and analysis of related literature. In an effort to reduce poverty, the role of zakat is to reduce social size; minimize the divide between the rich and the poor; and foster family and brotherhood values. Zakat also acts as a potential source of funds to alleviate poverty. The partnership between Baznas and Islamic banks is very important in efforts to reach the unbanked poor to be educated and introduce the concept of a bank so that when they reach the level of independence. This is also a form of Islamic financial inclusion bank.