Good Corporate Governance Principles in Islamic Banking: A Legal Perspective on the Integration of TARIF Values

Abstract

Islamic banking, rooted in the foundational principles of shiddiq (honesty), tabligh, amanah (fulfillment of beliefs), and fatanah (intelligence) derived from the teachings of Prophet Muhammad, stands in contrast to conventional banking driven by the Western-derived concepts of Good Corporate Governance (GCG), encapsulated in transparency, accountability, responsibility, independency, and fairness (TARIF). This research explores the possibilities and implications of applying GCG principles in Islamic banking, examining their impact on Islamic economic law. Through a normative legal study, the research delves into primary and secondary legal materials, employing a deductive analysis with statutory and conceptual approaches. The integration of GCG principles in Islamic banking reflects a convergence of values, fostering justice, tawazun (balance), mas’uliyah (accountability), akhlaq (morality), shiddiq (honesty), amanah (fulfillment of beliefs), fatanah (intelligence), and economic equilibrium within the framework of Islamic economic law.