THE ROLE OF SHARIA SUPERVISORY BOARDS IN MEETING MAQASID SYARIAH – STUDY ON ISLAMIC BANKS IN INDONESIA

Hasan Mukhibad

doi:10.13135/2421-2172/3620

Hasan Mukhibad

DOI: https://doi.org/10.13135/2421-2172/3620

Keywords: Maqasid Syariah, The Role of Sharia Supervisory Boards, Corporate Governance

Abstract

Islamic and conventional banks have real operational differences, so it would be better to measure the performance of these two kinds of banks with different tools. One alternative performance measure is Maqasid Syariah. The research has been conducted to prove whether the Corporate Governance, Sharia Supervisory Boards (SSB), and Corporate Ethics have contributed to the achievement of Maqasid Syariah. The research sample is commercial Islamic banks in Indonesia with an observation period from 2009-2017. The data processing uses Equation Model Structure. The result studies are Maqasid Syariah have not yet become a matter of concern for Islamic banks in Indonesia. This fact is proven by the lack of any role for the corporate governance and SSB in ensuring that Maqasid Shariah are met. Corporate Governance have a positive influence on profitability. Islamic banking makes a positive contribution to Corporate Ethics, and has a positive effect on profitability and Maqasid Syariah.

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