BANK SYARIAH MANDIRI: GOLD PAWN PROGRAM

This case study explores about Gold Pawn in Bank Syariah Mandiri, Indonesia. Gold pawn is a gold-based collateral financing services as an alternative to earn cash directly. However, the Central Bank of Indonesia (Bank Indonesia) considered gold pawning practices are inconsistent with the original concept and became instrument of vehicle of speculation. The central bank then issued Regulation letter to eight Islamic banks and Islamic business units in order to reorganize their services. The objective of this case is to give the audience a view of main challenges in BSM to improve the system of standard operating procedures based of Regulation Letter from Bank Indonesia.