Abstract
Islamic Banking has been remarkably progressing, in terms of products and services array, worldwide acceptance and growing market dominance. Behind the current standing and proliferation of its products and services, the same principles and the same applications of Islamic modes of traditional contracts have been applied to it. Since basic Sharia and its literacy are inevitable for further discussion of Islamic one, four of Sharia injunctions such as interest prohibition, permissible business, Islamic payoff with risk taking, and the relationship between shahibul maal and mudarib, have been explained. Six modes such as murabahah, salam, istisna, ijarah, musharakah and mudarabah have been introduced, analyzed through the nine articles from Fatwa DSN (2007), because more than 90% of Islamic operations have been based on the six modes and the nine articles are minimal amount of knowledge for analyzing them. With the benefit of the knowledge, the comparison between Islamic modes of contracts and conventional ones, has been made, which enlightens to the Islamic banking sphere.
