IMPLEMENTATION OF LOCAL WISDOM VALUES OF SMERTI VEDA (HINDU LAW COMPENDIUM) IN HINDU BANKING LAW

Abstract

Bali has a Distinctive Financial Institutions, namely the Lembaga Perkreditan Desa (LPD)/ Village Credit Institutions. LPD based on indigenous village with its legal basis is Awig awig (these regulations become the basic guidelines of indigenous village government). Inspired by the LPD Pakraman there is a desire to create an economic system based on the values of Hinduism through the establishment of Hindu Bank. Hindu Bank is a business entity whose main function as a collector of funds of persons or institutions and the distribution of funds to persons or institutions that need, the systems and mechanisms of its business activities based on the Law of Hindu as set forth in Manawa Dharmasastra (Compendium Hindu Law) and the other teachings of Hindu. The ideals of the Hindu community to be able to improve the economy of the community in order to alleviate poverty in Bali can be realized by establishing financial institutions nuanced Hindu values such as establishing a Hindu Bank.

Keywords: Local Wisdom, Smerti Veda, Hindu Banking Law