Sharia Banking’s Profit Loss Finance in the Context of ASEAN Economic Community

The paper’s aim is analyzing the problems of profit and loss sharing financing. It was conducted with literature and interviews on funding customers, Islamic bankers and entrepreneurs. The results show that profit oriented lack of trust in the abilities of partners, moral hazard, mismanagement and lack of sharia product information. In dong so, giving incentive for funding customers, incentive compatible constraint, involved effort in spiritual and intellectual expected may help small and medium enterprises to face ASEAN Economic Community.