Performance Of Islamic Banks In Indonesia Research Articles

Islamic Corporate Social Responsibility (ICSR) disclosure and Islamic Banks (IBs) performance: The application of stakeholder theory from Islamic perspective

This study aims to examine the effect of ICSR disclosure on the performance of IBs in Indonesia. Disclosures are prepared based on AAOIFI standards and previous researches then formed a disclosure index, while the performance of IBs is compiled from financial performances: ROA, ROE, and productivity performances which are formed into variables are formed by factor analysis. The samples of this research are 12 IBs from 2008 until 2019. Several IBs that had not yet been established in 2008 had been observed since the establishment of the banks until 2019, from this, it is obtained 121 observations. The test results show that all indicators of ICSR disclosure consisting of eight indicators: sharia compliance, ethical behavior, management, human resources, environment, social activities, products and services, research and development, and training have a positive effect on the performance of IBs. This provides an understanding that all of the disclosure indicators provide a good image or reputation to the public, thereby generating trust and in the long-term improving the performance of IBs.

KOMPARASI KINERJA PERBANKAN SYARIAH INDONESIA DAN MALAYSIA DENGAN PENDEKATAN MAQASHID SYARI’AH INDEX (MSI) (Studi Pada Perbankan Syariah Indonesia dan Malaysia Tahun 2011-2015)

Abstract: Measuring the performance of sharia banking by using conventional measurement has not beenable to show the assessment of Islamic banking performance in accordance with the purpose of sharia. Thereare differences in sharia banking with conventional banking, so it needs performance measurement from otherside that is devoted to sharia banking. This research aimed at analyzing and comparing the performance ofIslamic banking in Indonesia and Malaysia by using Maqashid Syariah Index (MSI) approach. This researchobject of 11 Sharia Commercial Banks in Indonesia and 15 Sharia Commercial Banks in Malaysia that havebeen operating during 2011-2015. Sources of research data used annual reports of each bank. The steps tomeasure bank performance with Maqashid Syariah Index (MSI) is ratio performance assessment, assessmentof performance indicators and last assessment of the Maqashid Syariah Index (MSI). The results showed thatthere were differences in performance based on the value of Maqasid Syariah Index (MSI) between Indonesianand Malaysian sharia banks in 2011-2015. Sharia banking performance in Indonesia was better in achievingmaqashid sharia than sharia banking in Malaysia. The highest rating of Islamic banking in Indonesia wasPanin Syariah Bank (BPS) and Islamic banking in Malaysia was HSBC Amanah Malaysia Berhad (HSBC)