Sharia Supervisory Board Research Articles

THE ROLE OF THE SHARIA SUPERVISORY BOARD (DPS) IN IMPLEMENTING SHARIA PRINCIPLES IN BAITUL MAAL WA TAMWIL (BMT) PRODUCTS

Abstract 
 As a sharia economic entity, the entire business and activity of BMT must comply with the provisions of the MUI DSN fatwa. To ensure the implementation of the application of sharia principles to products within the BMT institution. Thus the role of DPS is very important because it ensures that BMT in its operations is in accordance with sharia provisions or not. This study aims to analyze what kind of supervision is carried out by DPS in BMT. This study uses a descriptive qualitative method with an interview method approach with data collection obtained through interview information by the informant manager, AO, Teller from BMT. The results of this study show that there are still obstacles faced by the DPS in carrying out supervision due to several factors, namely limited human resources and the age factor of DPS members. These results provide recommendations to DPS to develop its performance in conducting supervision. 
 Keywords: Sharia Supervisory Board, BMT, Sharia Principles

STRATEGI MENGOPTIMALKAN PERAN DPS DALAM PENEGAKAN PRINSIP SYARIAH DI LEMBAGA KEUANGAN SYARIAH

Islamic Financial Institutions are financial institutions whose operations are based on sharia principles. The business that is run must not have prohibited elements in its financial transactions such as riba, maysir and gharar. The presence of a Sharia economic fatwa issued by DSN-MUI becomes a guideline for LKS in formulating its financial products to be in accordance with sharia contracts. To maintain the implementation of sharia principles in LKS, there is a Sharia Supervisory Board as a representation of DSN-MUI whose position acts as a sharia compliance supervisor who is in charge of maintaining conformity between the DSN-MUI fatwa and the practice of financial products in LKS. The study in this paper aims to analyze the existence of DPS in LKS and then try to formulate strategies to optimize the role of DPS in controlling shariah compliance. The existence of DPS in LKS has a very important position in controlling shariah compliance and strategies that can be carried out in optimizing its role such as socializing about the role of DPS actively so that there is no more confusion about how the role of DPS, the selection of DPS which must prioritize capabilities (mastering contemporary Islamic economics and finance and fiqh muamalah) rather than just figuration, Furthermore, strengthening the position of DPS in order to have independence so that it is safe from potential intervention in the implementation of its duties.

Sharia Supervision in The Standards of Good Governance Perspective in Libyan Islamic

This study aims to highlight the role of Shariah Supervisory Authorities, functions and mechanisms of formation, effectively played by the principles and mechanisms of governance in increasing the efficiency of its performance, and to highlight the role and importance of legitimate governance oversight bodies in the achievement of disclosure and transparency to its business. The study found the need to provide a guiding board of directors and Shariah Supervisory Authority on how to perform their duties on the issues legitimacy guide, as well as the completion of the legal framework and raising the efficiency of the legitimate bodies, and the supervisory and control devices for Islamic Financial Institutions ‘And work on the interest of planning, monitoring and evaluating performance of the Sharia Supervisory Authority, as well as disclosure and transparency about the activities of these illegal bodies to reassure dealers, through the formulation of a framework for legitimate governance oversight bodies and circulated to Islamic financial institutions. The study clarified the important role played by the Sharia Supervisory Board, and the study presented a number of examples of the importance of the Sharia Supervisory Board in enhancing trust between Islamic banks and the public dealing with them, such as Islamic banks in Bangladesh.

Sharia Supervision in The Standards of Good Governance Perspective in Libyan Islamic

This study aims to highlight the role of Shariah Supervisory Authorities, functions and mechanisms of formation, effectively played by the principles and mechanisms of governance in increasing the efficiency of its performance, and to highlight the role and importance of legitimate governance oversight bodies in the achievement of disclosure and transparency to its business. The study found the need to provide a guiding board of directors and Shariah Supervisory Authority on how to perform their duties on the issues legitimacy guide, as well as the completion of the legal framework and raising the efficiency of the legitimate bodies, and the supervisory and control devices for Islamic Financial Institutions ‘And work on the interest of planning, monitoring and evaluating performance of the Sharia Supervisory Authority, as well as disclosure and transparency about the activities of these illegal bodies to reassure dealers, through the formulation of a framework for legitimate governance oversight bodies and circulated to Islamic financial institutions. The study clarified the important role played by the Sharia Supervisory Board, and the study presented a number of examples of the importance of the Sharia Supervisory Board in enhancing trust between Islamic banks and the public dealing with them, such as Islamic banks in Bangladesh

Sharia Service as An Added Value: Response to Sharia Standard in Hospital Service

The application of sharia principles in business activities and services adds to standard compliance and some of them are trapped in the legalistic formality aspect rather than improving business ethics. In hospitals, which main business is providing health services, applying sharia principles may enhance the added value in health services or just a formal aspect. The purpose of this study seeks to reveal the community's response to the application of sharia standards in hospitals. The study used a quantitative research method, through the distribution of questionnaires to 50 patients and their families in three regional public hospitals; Zainoel Abidin Hospital Aceh, Sultan Agung Hospital Semarang, and Bandung Islamic Hospital, and interviews with the management and sharia supervisory board of the hospital. This study describes descriptively, with a Likert scale approach, to see the response toward the application of sharia standards. The results show that the majority of respondents gave a positive response to the application of sharia standards. Sharia standards are added value services in sharia hospitals. The results of this study is implicated in the management of sharia compliance in hospitals and the need for regulatory support for the implementation of sharia in hospitals.

Activating the subsequent Sharia supervision in the Jordanian Islamic banks

The study aimed to explain the reality of subsequent Sharia supervision in Jordanian Islamic banks, its problems, the requirements for its activation, and present the necessary proposals for its development and activation. The study relied on the descriptive, inductive and deductive approach. The study found that there are problems that impede the activation of subsequent censorship. It also concluded that the Sharia audit, which does not enjoy high independence, carries out subsequent oversight tasks, given the inability of the Sharia Supervisory Board to perform this role Due to insufficient time and human resources. The study presented a proposal to activate the subsequent Sharia oversight, which is based on the complete independence of Sharia supervision through the establishment of a central Sharia control that is provided with all the requirements for doing the work.

Perbandingan Kualitas Audit Perbankan Syariah di Malaysia dan Indonesia

Abstract - This study aims to compare audit quality in Islamic banking in Indonesia and Malaysia by using Audit Quality Indicators (AQIF), such as Good Corporate Governance which increases the size of the board, sharia supervisory board, audit commiteee, frequency of audit meeting, audit tenure, auditor industry specialization and audit firm reputation used to obtain audit quality in sharia banking during the 2014-2017 period. The sample in this study used Purposive Sampling and obtained a sample of 12 Islamic banks in Indonesia and 11 Islamic banks in Malaysia. The data used is secondary data from financial or annual reports issued through the official website of Islamic banks. In comparing these two banks, the analysis used is a different test from the Independent Sample t-test. The results showed significant differences with a significance level of 0,000 on the size of the board, sharia supervisory board, audit tenure, auditor of industry specialization and audit firm reputation And there is no significant difference in the size of the audit committee with a significance level of 0.513, the frequency of the audit board with a significance level of 0.090, the audit tenure with a significance level of 0.124.

The Implementation of Sharia banking in Indonesia Pertaining Sustainable Sharia Measurement

Abstract: 
 The purpose of this paper is to investigated how effective the GCG/annual report, and Sustainability, are in presenting information on the performance of Sharia banking in Indonesia applying sharia reporting criteria. This analysis will bring up the report based on a copy of the Financial Services Authority of the Republic of Indonesia's Circular Letter No. 10 / SEOJK.03/2020 on Transparency and Report Publication for Islamic Commercial Banks and Sharia Business Units. In the GCG and sustainable report, the variables of banking size, ratio, and Sharia Supervisory Board size. Secondary data from 12 Islamic banks from 2019 and 2020 is being used in study, that either takes a descriptive quantitative approach. Furthermore, the determined indicators will be sorted using factor analysis with SPSS 12. The GCG/annual report shows better performance than the sustainability report, as evidenced by significant values in the whole test and factor analysis stages. 11 Islamic commercial banks, on the other contrary, do not have a test stage but do have a detailed study. Meanwhile, the sustainability report is not greater to the GCG/annual report because, while the sustainability report is on average significant, it lack variable testing stages that are comparable with the positive influence on the produced factors. The OJK would update POJK 51 / POJK.03/2017 well about Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies for sharia report indicator points, along with other observations and recommendations. Second, Islamic banks must comply to protracted sharia reporting standards.
 Keywords: Sharia Report, GCG/Annual Report, and Sustainability Report.

The Role And Competence Of Sharia Auditors In Supporting The Performance Of Sharia Banking

This article aims to provide an overview of the role of shariah halal auditors in the guarantee system in sharia banking in Indonesia. Sharia banking is a financial institution that must be examined and tested with smart products, and it is operated by an independent institution which is a "sharia auditor" and must be considered by sharia auditors, namely sharia bank financial statements, SOP (System Operating Procedures), Sharia Human Resources (HR), Sharia supervisory board, and sharia product structure. Monitoring shari'ah banks and monitored by internal or external shari'ah auditors, while guarantees in Islamic law are divided into two namely: personal guarantees and property guarantees and are known as “kafalah or rahn”. The institution controls or monitors that internal or external shariah auditors must carry out internal shariah reviews conducted by shariah compliance officers, who control or monitor shariah compliance and "fatwa" decisions, instructions, guidelines, issued by the Shariah Oversight Board of the financial institution. .Sharia review, sharia internal review and sharia audit are important processes to ensure a halal assurance system for the operational activities of sharia financial institutions and their sharia products. Reports and recommendations from the Sharia Monitoring Board will be submitted to the National Sharia Monitoring Board for consideration.

Mechanism and Implementation of Murabahah Agreement on Motorcycle Financing for ASN Bank Sumut Syariah KCPS Hm Yamin

This study was made to explain the mechanism and implementation of the murabahah contract in motorcycle financing for the state civil apparatus (ASN) which is run by a syriah Sumatran bank. In the implementation process, Bank Sumut Syariah will provide terms and conditions that must be met by customers who wish to apply for motorcycle financing for this ASN. The customer must also follow the procedures set by Bank Sumut Syriah. Motorcycle financing procedures for ASN at Bank Sumut Syariah KCPS HM Yamin. In this motor vehicle financing, the Bank of North Sumatra Syariah acts as a financing institution, not as a pure seller who provides goods needed by customers. Bank Sumut Syariah will only buy products in accordance with the terms of the murabahah contract made to financing customers. Bank Sumut Syriah has complied with the provisions and farwa of the Sharia Supervisory Board NO.04/DSN-MUI/IV/2000 regarding murabahah financing in implementing murabah financing.

The Effect of Profitability, Leverage, Liquidity and Sharia Supervisory Board on Disclosure of Islamic Social Reporting

This study aims to determine the Effect of Profitability, Leverage, Liquidity and Sharia Supervisory Board on Disclosure of Islamic Social Reporting (Study on Islamic Banking Companies Listed on the Indonesia Stock Exchange 2016-2019 Period). The sampling method used is purposive sampling method. The number of companies that were sampled in this study were 10 Islamic Banking Companies Listed on the IDX for the 2016-2019 period. The data used is secondary data. The data analysis method used in this research is Multiple Linear Regression. The results of this study indicate that Profitability Affects Disclosure of Islamic Social Reporting in Islamic Banking Companies listed on the Indonesia Stock Exchange (IDX) in the 2016-2019 period. Leverage Affects Disclosure of Islamic Social Reporting in Islamic Banking Companies listed on the Indonesia Stock Exchange (IDX) in the 2016-2019 period. Liquidity Affects Disclosure of Islamic Social Reporting in Islamic Banking Companies listed on the Indonesia Stock Exchange (IDX) in the 2016-2019 period. Sharia Supervisory Board Influences on Disclosure of Islamic Social Reporting in Sharia Banking Companies listed on the Indonesia Stock Exchange (IDX) in the 2016-2019 period.

Intellectual Capital and Social Performance of Indonesian Islamic Banks: The Role of Sharia Supervisory Boards Monitoring Activities

Intellectual Capital and Social Performance of Indonesian Islamic Banks: The Role of Sharia Supervisory Boards Monitoring Activities

Analysis and Comparison of Financial Technology Peer to Peer Lending Sharia and Conventional

Among the types of fintech that are growing rapidly in Indonesia at this time are peer-to-peer lending fintechs, technology-based money-borrowing fintechs through peer-to-peer lending services have advantages, namely simple requirements and a fast process compared to borrowing and borrowing. money to banking institutions. In addition to conventional peer to peer lending fintech services, there are also sharia peer to peer lending fintech services. This study aims to identify and analyze the differences between conventional peer to peer lending fintech and sharia peer to peer lending fintech and how to apply sharia principles in sharia peer to peer lending fintech. So that it can guarantee the Indonesian people, whose residents are generally Muslim, will the halal products offered. The differences between sharia peer to peer lending fintech and conventional peer to peer lending fintech include: First, from the regulatory aspect that governs it, Second, the existence of a Sharia Supervisory Board in sharia fintech, Third, in the working mechanism between conventional fintech and sharia fintech which makes the difference of course with the existence of sharia principles. And fourth, in practice, in sharia fintech generally the loans provided are productive and more varied. Meanwhile, in its application, sharia peer to peer lending fintech is in accordance with the Fatwa of the MUI National Sharia Council No. 117/DSN-MUI/II/2018. in the working mechanism between conventional fintech and sharia fintech, the difference is of course with the existence of sharia principles. And fourth, in practice, in sharia fintech generally the loans provided are productive and more varied. Meanwhile, in its application, sharia peer to peer lending fintech is in accordance with the Fatwa of the MUI National Sharia Council No. 117/DSN-MUI/II/2018. in the working mechanism between conventional fintech and sharia fintech, the difference is of course with the existence of sharia principles. And fourth, in practice, in sharia fintech generally the loans provided are productive and more varied. Meanwhile, in its application, sharia peer to peer lending fintech is in accordance with the Fatwa of the MUI National Sharia Council No. 117/DSN-MUI/II/2018.

Sharia Financing Analysis On The Financial Performance Sharia Banking In The Moderation Of The Syariah Supervisory Board (DPS)

The aim of this study is to research and examine the effect of Mudharaba, Musyaraka, Murabaha financing on sharia financial performance moderated by sharia supervisory board on sharia bankings in Indonesia during 2013-2016. This study employed descriptive quantitative method by using secondary data i.e. data of Financing, and Return on Asset of sharia banking companies in the period of 2013-2016. The samples were reports published continuously from 2013 to 2016 and financial statements which have complete data based on researched variables derived through purposive sampling. To analyze the data, this study used some tests of multiple linear regression, classical assumption, and hypotheses test which included coefficient determination test of R2, F test, and t test. Based on the data analysis, it can be concluded that the factors that affect sharia financial performance (ROA) included Mudharaba, Musharaka and Murabaha financing, where all independent variables have significant effect on ROA. While DPS has been successful in moderating the correlation of mudharaba and Musyarakah variable and ROA but DPS has not been successful in moderating the correlation of Murabah and ROA

Determinan Discretionary Loan Loss Provision pada Perbankan Syariah di Indonesia

This study is a quantitative study that aims to examine the effect of pre-managed earnings, capital management, leverage, sharia supervisory board, concentration ownership, and institutional ownership variables on earnings management proxied through discretionary loan loss provision. The research object used in this study were 12 Islamic banks registered with the Financial Services Authority (OJK) for the 2015-2019 period which were selected through purposive sampling technique. The data analysis technique used is panel data regression analysis using the help of the e-views software version 11. The results of this study indicate that pre-managed earnings, concentration ownership, and institutional ownership have no effect on discretionary loan loss provision. The leverage variable has a significant negative effect on the discretionary loan loss provision and the sharia supervisory board has a significant positive effect on the discretionary loan loss provision. While the capital management variable has an effect on the discretionary loan loss provision but has the opposite direction to the hypothesis in this studyKeywords: Discretionary Loan Loss Provision, Pre-managed Earnings, capital management, Leverage, sharia supervisory board, Ownership

Improving Integrated Reporting Quality Through Islamic Corporate Governance

Innovative and adaptive to face new business challenges by making the process of creating added value for the company. Integrated Reporting is a reflection of the efficiency and effectiveness of various types of corporate capital. The main focus of the implementation of integrated reporting is on transparency and optimizing stakeholder interests, namely in the field of corporate governance. This study aims to examine the effect of the implementation of the Islamic corporate governance mechanism on integrated reporting. The sampling in this study was purposive sampling with the results of 12 Islamic banks. Hypothesis testing using multiple regression analysis. The result of hypothesis testing is the characteristics of independent commissioners consisting of the number and frequency of audit committee meetings have a positive and significant effect on improving the quality of integrated reporting. characteristics of the audit committee consisting of the number of audit committees, audit committee education, and the frequency of audit committee meetings have a significant effect on increasing integrated reporting quality. sharia supervisory board consisting of the number, education and frequency of sharia supervisory board meetings have an effect on increasing integrated reporting quality, except for the variable number of sharia supervisory boards

Profit Distribution Management and Determinant Factors: Empirical Study on Sharia Commercial Bank in Indonesia

Profit Distribution Management is critical for Islamic bank managers to ensure the banks they manage are sustainable. Profit Distribution Management will serve as the foundation for depositors' decision to invest in sharia banks. The study's overarching objective is to ascertain the level of profit distribution management at a sharia commercial bank and the factors that influence it. According to this study, the distinguishing characteristics of a sharia commercial bank that affect profit distribution management are capital adequacy, the percentage of third-party funds, and the age of the bank. While macroeconomic and Sharia Supervisory Board specific factors had no effect on the profit distribution management of a sharia commercial bank. This study made a significant contribution to the Islamic banking manager, Bank Indonesia, the Sharia Financial Accounting Standards Board, and the Islamic banking depositor.

The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia

This study aimed to prove whether Sharia Compliance (SC) mediates the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR) on financial performance and maqashid sharia performance in Islamic Commercial Banks (ICBs) in Indonesia. A regression analytical method was employed based on Structural Equation Modeling with panel data in the annual report published by ICBs in Indonesia for the period 2014-2019. The results proved that SC mediated GCG and CSR on maqashid sharia performance positively while negatively mediated them on financial performance. At the same time, it did not mediate SSB on both financial performance and maqashid sharia performance. Based on these findings, policymakers should launch regulations on the disclosure of the dimensions GCG, SSB, CSR, and SC in the annual reports of ICBs. In practical implementation, ICBs should improve GCG, CSR, and SC as the performance of Islamic banking-supporting dimensions, and, evaluate SSB as the non-supporting one

Income Smoothing Practices at Sharia Banks: An Overview in Islamic Business Ethics

Sharia Bank is a bank conducting its business activities based on Islamic principles. Sharia bank as an institution based on the principles of Islam are not allowed to manipulate earnings and engineering activities in any form of earnings management is no exception in terms of financial reporting, which is a medium of information for its users. Income smoothing is an act of deliberate manipulation by management to profits fluctuate, which later reported that corporate profits are at levels considered normal. The purpose of this paper is to investigate the income smoothing practices in sharia banks in Indonesia and review of income smoothing practices according to Islamic business ethics. This study used 11 sharia banks (BUS) based on BUS list on Bank Indonesia's website as research object. To know a company is included in the income smoothing group or not, the Eckel index is used. Based on calculations using Eckel index, it can be concluded that 5 out of 11 sharia banks in Indonesia are indicated to practice income smoothing. However, the annual report of the five syariah banks indicated by the practice of income smoothing indicates that all opinions given by the Sharia Supervisory Board regarding operational activities and products or services provided by sharia banks to customers generally comply with the fatwa and sharia provisions issued by DSN- MUI. That is, the policy or practice of income smoothing in Islamic banks is not contrary to the principles of sharia and Islamic business ethics.

Indonesian Sharia Banking in Facing the Industrial Revolution 4.0

This study looks at the impact of the industrial revolution 4.0 on the Islamic banking sector. The industrial revolution simply implies major and advanced innovations to the way humans produce goods. This great change has happened three times, and we are currently experiencing the fourth industrial revolution. Every major change is always followed by major changes in the economic, political, even military, and cultural fields. The Industrial Revolution 4.0 has entered Indonesia since 2015. This provides opportunities for several economic sectors around the world to gain market share and wider investment. This study uses qualitative methods to explain the phenomenon being studied. The Sharia Supervisory Board and National Sharia Council of the Indonesian Ulema Council (DSN-MUI) are one of the regulators that make sharia banking stronger and more recognized. A method that we use is a qualitative method by looking at and analyzing the object of research to be studied. Where the object of research in this paper is Islamic banking in Indonesia, and how Islamic banking faces the Industrial Revolution 4.0. Islamic banking in Indonesia needs to apply advanced technology to be able to compete with conventional banking, especially during the 4.0 era, technology is one of the most important things to be able to keep up with the times.