Sharia Supervisory Board Research Articles

The Influence of Institutional Ownership, Sharia Supervisory Board, Board of Directors, and Company Size on Profitability with Islamic Social Reporting as a Moderating Variable

The purpose of this study was to examine the effect of institutional ownership, sharia supervisory board, board of directors, and company size on profitability with Islamic social reporting as a moderating variable. The sample used in this research is Islamic Commercial Banks in 2015-2021 with a total of 96 samples. The data analysis technique used is panel data regression analysis. Analysis of the 3 stages of the test, namely the preliminary test which will determine the model used through the chow test, Breush and pagan lagrangian multiplier test, and Hausman test. Based on the results of the three preliminary tests, this research will use a fixed effect model to examine the relationship between variables. Then the diagnostic tests, namely heteroscedasticity and autocorrelation, are continued with hypothesis testing.

The Influence of Intellectual Capital and Characteristics of the Sharia Supervisory Board on the Performance of Islamic Maqashid

This study aims to examine the implementation of Islamic maqasid performance in Islamic banks by considering the influence of the aspects of Intellectual Capital (IC) and the Sharia Supervisory Board. This study uses a sample of Islamic banks in Indonesia that are registered with the Financial Services Authority. The number of observational data is 148 data during the 2008-2020 period. To test the research hypothesis used panel data regression model analysis. The analytical tests used in this study were the preliminary test (Breusch-Pagan, likelihood test, hausman test) , diagnostic tests (heteroscedasticity test and autocorrelation test) and hypothesis testing. Based on the results of the three preliminary tests in determining the panel data regression model, this study will use a random effect model . The results of the study reveal that Intellectual Capital (IC) has a positive influence on the performance of Islamic maqashid . Utilization of Intellectual Capital (IC) that is more optimal can improve the performance of higher Islamic banking maqashid sharia.

Strategi PT. BPR Balerong Bunta dalam Percepatan Konversi ke BPR Syariah

The research aims to find out the strategies carried out by PT BPR Balerong Bunta in the process of accelerating the conversion from conventional banks to Islamic banks. This type of research is field research with a qualitative descriptive approach. Data analysis techniques are carried out through data collection by interview, data reduction, data display and conclusion drawing. The results showed that the strategy carried out by PT. BPR Balerong Bunta in accelerating the conversion was to form a special team named the conversion team, conduct a comparative study, make a conversion business feasibility study, coordinate directly with prospective Sharia Supervisory Board and the board of commissioners, as well as conduct weekly meetings, complete the conversion requirements regulated by the Financial Services Authority, prepare core banking IT, conduct training and development of directors and employees

The effects of corporate governance on operational risk disclosure in Indonesian Islamic Banking

This study aims to examine the influence of corporate governance on operational risk disclosure in Indonesian Islamic Bank. The corporate governance variables examined in this study are institutional ownership, board of commissioners, audit committee and Sharia Supervisory Board (SSB). The study was conducted on all Sharia banks (13 banks) for the 2014-2018 period using multiple regression method. The results of the study showed that institutional ownership had a significant positive effect on the disclosure of operational risk, and the findings of this study support the hypothesis. However, the board of commissioners, audit committee, and SSB had no effect on the disclosure of operational risk. The results of the study indicated that the hypotheses only partially supported, implying that there are still opportunities to conduct other studies to identify the determinants of operational risk disclosure in Islamic banks. In addition, this study is expected to be able to contribute to measure operational risk disclosures by considering banking regulations in Indonesia.

Impact Of The Maqasid Sharia Index Mediation On Financial And Governance Performance And Profitability Sharia Commercial Banks In Indonesia

This study aims to explore the impact of the influence of Maqashid Syariah as a moderating variable on the variables capital adequacy ratio, operational costs, non-performance finance, Sharia supervisory board, and independent board of commissioners in influencing the profitability of Islamic banks in Indonesia. using panel data regression analysis, which is a combination of time series and cross-sectional data. The sample consists of 11 Islamic commercial banks with a time series from 2015 to 2020. The factors in the study are based on previous empirical literature. The findings show that the variables that have been moderated by Maqashid Shariah, such as the capital adequacy ratio and the Sharia supervisory board, are more significant than the variables of operational costs, non-performance finance, and the independent board of commissioners in influencing the profitability of Indonesian Sharia banking. The results of the study show that profitability growth, as measured by the moderation of the Islamic Maqashid variable on the capital adequacy ratio and the Sharia supervisory board, is a significant determinant of profitability, which implies that most of the profitability of Islamic banking in Indonesia is motivated by the capital adequacy ratio and the Sharia supervisory board, which is statistically significant. The coefficients of the capital adequacy ratio and Sharia supervisory board measures imply that these variables have a positive effect on the profitability of Islamic banking in Indonesia. The increase in profitability of Islamic banking in Indonesia, as measured by the capital adequacy ratio and the Sharia supervisory board, has a positive effect on profitability; these findings indicate that the growth of factors such as operational costs, non-performance finance, and the independent board of commissioners in influencing profitability of Indonesian Sharia banking is not motivating.

Antecedents and consequences of islamic bank performance based on the maqashid sharia index

This study aims to obtain empirical evidence regarding the antecedents and consequences of performance based on the maqashid sharia index in Islamic banks in Indonesia. The maqashid sharia index in the literature and previous empirical research is limited to its use in the aspect of performance measurement only. This study seeks new insights into the antecedents and consequences of Islamic bank performance based on the Islamic maqashid index. The antecedent studied is the characteristics of the sharia supervisory board, while the consequences studied are Islamic social reporting. This study examines the effect of the sharia supervisory board on the maqashid sharia index in Islamic banks in Indonesia. In addition, this study also examines the effect of the maqashid sharia index on Islamic social reporting. The research sample is 11 Islamic banks in Indonesia within four years (2015-2018). This study found that the characteristics of the sharia supervisory board had a significant effect on the maqashid sharia index. The better the characteristics of the sharia supervisory board the higher the maqashid sharia index is. In addition, the maqashid sharia index has a significant effect on Islamic social reporting, meaning that the higher the maqashid sharia index, the better Islamic social reporting. The first implication is that it requires Islamic banks to pay attention to fair returns, avoid prohibited products and services, and eliminate harmful elements that result in injustice. The second implication is that it requires Islamic banks to seek to increase their profitability, redistribution of profits and welfare, and investment in the real sector.

The Influence of Independent Commissioners, Islamic Social Reporting, and Sharia Supervisory Board on Earning Management with Firm Size as a Moderating Variable in Sharia Commercial Banks in Indonesia

This study aims to determine whether independent commissioners, Islamic social reporting and sharia supervisory boards affect earnings management. This study also aims to determine whether firm size can moderate the relationship between independent commissioners, Islamic social reporting, and sharia supervisory boards on earnings management. The population used in this study are Islamic Commercial Banks registered with the OJK from 2013-2021. The sample selection was carried out using the purposive sampling method. The number of samples in this study was 14 Islamic Commercial Banks, so a total of 126 research observations could be obtained. Data processing was carried out using the EViews version 10 program. The results showed that: (1) Independent commissioners partially have no effect on earnings management, (2) Islamic social reporting partially influences earnings management, (3) Sharia supervisory board partially influences earnings management, (4) Firm size partially moderates the relationship between independent commissioners, Islamic social reporting, and sharia supervisory boards. Keywords: Independent Commissioner, Islamic Social Reporting, Sharia Supervisory Board, Firm size, Profit Management.

Analisis Perbandingan GCG Pada Kinerja Keuangan Perbankan Syariah Dengan Perbankan Konvensional

The implementation of Good Corporate Governance in banking is expected to affect banking performance, because the implementation of Good Corporate Governance can improve financial performance. After the issuance of the Indonesian Banking Regulation (PBI) Number 8/4/PBI/2006 which was later amended by Bank Indonesia Regulation Number 8/14/PBI/2006, it became clear how good and correct Good Corporate Governance practices are. All banking companies are competing to improve corporate image through their respective Good Corporate Governance Reports. It is certain that there are differences between the implementation of Good Corporate Governance between conventional banking and Islamic banking. Because seen from the banking goals are definitely different. The purpose of this study is to see whether there is a difference between the implementation of Good Corporate Governance in conventional banks and Islamic banking. And the result is that the implementation of Good Corporate Governance in the banking industry is actually the same, both conventional banks and Islamic banks because it has been regulated by Bank Indonesia. The implementation of Good Corporate Governance begins with a vision and mission of the company which is then adjusted to the applicable laws and regulations. Then there is an additional organizational structure for Islamic banks in the implementation of Good Corporate Governance with the formation of the Sharia Supervisory Board and the National Sharia Council. Both of them serve as special supervisors of Islamic banks. Apart from that, the difference lies in the corporate culture.

Maqashid Sharia Performance In Indonesian Islamic Banks: The Role Of Intellectual Capital And Sharia Supervisory Boards Cross-Membership And Gender Diversity

This study will examine the link between intellectual capital and maqashid sharia performance as well as the moderating effects of cross-membership and gender diversity of the sharia supervisory board to improve the influence of intellectual capital on maqashid sharia performance. The secondary source of data for this study was the yearly financial statements listed in the Indonesian Financial Services Authority between 2008 and 2020. The data analysis method used in this inquiry was a panel data regression model. The analytical techniques employed in this work include descriptive statistical tests, preliminary tests, and hypothesis testing. According to the results of the three preliminary tests that were used to develop the panel data regression model, this study uses the random effect model in models 1 and 2 to evaluate the relationship between intellectual capital elements and maqashid sharia performance. Cross-membership and the gender of SSB women are moderating factors. The results of this study show that intellectual capital influences Indonesian Islamic Banks' performance following maqashid sharia positively. This suggests that making better use of intellectual capital can improve a company's maqashid sharia performance. Cross-membership has a negative impact on maqashid sharia's performance, demonstrating that it will hinder the board's ability to focus and function effectively, which will lead to a decrease maqashid sharia performance. The results of this study demonstrate that the average female representation on the sharia supervisory board is only 4% of the total samples, meaning that it cannot affect maqashid sharia performance. Therefore, the female gender of the sharia supervisory board has no impact on maqashid sharia performance. In this study, there was no empirical support for the claim that gender diversity and cross-membership on sharia supervisory boards may increase intellectual capital for maqashid sharia performance.

The active role of Sharia Supervisory Board in Sharia compliance and risk mitigation: a case study of Bank NTB Syariah, Indonesia

The active role of Sharia Supervisory Board in Sharia compliance and risk mitigation: a case study of Bank NTB Syariah, Indonesia

Evaluation of Financial Risk Management in Iraqi Banks Comparison Study of Islamic Banks and Commercial Banks

Current research aims to study the extent to which Iraqi banks use risk management in works and methods to eliminate the risks associated with their business activity within the Iraqi banking sector, Also for comparison between Islamic banks, commercial and conventional banks, and traditional commercial banks with Islamic branches (Islamic Windows) In terms of risk management jobs. A standardized questionnaire was used to cover the main aspects of risk management: 1) Understanding Risks, 2) Managing Risks, 3) Identifying Risks, 4) Analyzing and Evaluating Risks, 5) Monitoring Risks, 6) Risk Management Practices Finally, 7) the types of risks faced by banks of all kinds operating in the Iraqi banking market, using a sample of 25 banks operating in the Iraqi banking market. The questionnaires were distributed to heads and managers of risk departments in banks, also it was supported by personal interviews. The results of the statistical study proved that the most types of risks faced by Islamic and traditional commercial banks in Iraq operating in the Iraqi banking market are both credit risks and money risks. Money risk represents one of the most important types of risk for Islamic banks, as there are not many short-term investment tools that are compatible with the provisions of Islamic Legislation. Which can attract the benefits of money to the governors of Islamic banks, and this is one of the most important challenges facing Islamic banks at the present time (short-term employment) Whereas, the activity management contracts within Islamic banks differ in the nature of their work and structure from traditional commercial banks to ensure their compliance with the provisions of Islamic legislation. After the approval of the Sharia Supervisory Board

Pranata Hukum Perbankan Syari’ah Dalam Sistem Perbankan Nasional di Indonesia

The development of Islamic banks as part of the Islamic economic system in Indonesia can be said to be late compared to other countries where the majority of the population is Muslim. However, the sharia banking legal system is strong and parallel to other conventional banking. If there is a dispute resolution problem for Islamic banks according to the Constitutional Court Decision Number 93/PUU-X/2012, they can use 2 (two) channels, namely litigation and non-litigation. The litigation route for resolving disputes over sharia banks is the absolute authority of the religious courts, while the non-litigation path of the parties can make choices not only as specified in the Elucidation of Article 55 paragraph (2) of Law Number 21 of 2008 concerning Sharia Banking but can also take alternative others in accordance with the agreed contract. Supervision of the implementation of Sharia Banking, apart from being carried out internally, is also carried out by independent supervisory institutions, namely the Sharia Supervisory Board (DPS) and the National Sharia Council (DSN) which have the task of maintaining sharia banking towards an ideal situation and protect the Muslims. In addition, as a form of public participation, all Muslims have an obligation to supervise both directly and indirectly as a vehicle for admonishing ma'ruf nahi munkar to the implementation of sharia banking as the lifeblood of the Islamic economy.

Determinants of the Effectiveness of the Islamic Insurance Industry Spin-Off Implementation in Indonesia with the Analytical Hierarchy Process Approach

This study aims to analyze the factors that have the highest level of importance in realizing the spin-off implementation of the Sharia Insurance Industry. The method used is qualitative with an Analytical Hierarchy Process (AHP) approach. Data were obtained from FGDs and AHP questionnaires with informants from AASI, the sharia life and general insurance industry, the Sharia Supervisory Board, the government, and regulators. The research results show that the clarity of policy, or spin-off criteria, has the highest importance. The sub-criteria with the highest level of importance is the clarity in value of tabarru funds which is 50% of the parent fund. The next factor is the actual practice in the industry and the function of monitoring and supervision, respectively. The factors that have the highest level of importance in realizing spin-off effectiveness are the relaxation of a specific aspect and the action of the industry, whether to continue or postpone the spin-off. These aspects include the implementation of tax relief based on the book value of the company's assets, relaxation in reducing costs that occur during and after the spin-off until the SBU is stable and independent, policies related to bank assurance, and policies related to capital. The research implication for industry and regulation considers determining integrated and coordinated efforts to achieve an effective spin-off implementation. The limitation of this research is in determining the factors not based on sub-criteria but the factors as a whole. The novelty of this research is in determining the topic and method, namely analyzing the most dominant factors to realize effectiveness with the AHP method.

Disclosure of Internal Audit Functions of Islamic Banks in Indonesia

Research aims: In the massive emerging development of the Islamic financial industry, the role of the internal audit function is in the spotlight as governance is the main issue of this industry’s sustainability. This study, therefore, aims to reveal the role of the internal audit function of Islamic banks in Indonesia.Design/Methodology/Approach: The study employed secondary data from annual and Good Corporate Governance (GCG) reports from Islamic banks in Indonesia to be analyzed with the qualitative content analysis by Schreier.Research findings: The researchers highlighted that the GCG and annual reports could uncover the role of internal audits in Islamic banks. The scope of an internal audit is divided into three essential activities: preparation of work program plans, implementation, monitoring, and follow-up on findings. In comparison, the authority is to communicate with the board of directors, board of commissioners, and audit committee, including the Sharia Supervisory Board (SSB), regarding sharia compliance.Theoretical contribution/Originality: Sharia compliance ensures the soundness and credibility of the Islamic finance industry. This study identified the role of the internal audit functions of Islamic banks using qualitative content analysis for the first time. Therefore, this study is unique in how the disclosure of internal audit function is presented.Research limitation/Implication: This study was limited in a deeper understanding of the findings as it was based on secondary data analysis. However, the researchers provide vital insights on control conduct of the role played by internal auditors of Islamic banks to satisfy every qualification needed as the role played by internal auditors is vital to pursue GCG principles.

FINANCIAL PERFORMANCE, SHARIA SUPERVISORY BOARD, AND CORPORATE GOVERNANCE AND ITS IMPACT ON SOCIAL RESPONSIBILITY AT INDONESIAN SHARIA BANK

This study aims to find out how much influence the financial performance, sharia supervisory board, and corporate governance on sharia banking responsibilities in Indonesia. The population in this study is all Sharia banks in Indonesia from 2015 to 2019. In contrast, the samples in this study were determined by purposive sampling, so 14 samples were obtained. The type of data used is secondary data obtained from www.bi.go.id. Based on the results of financial performance research, it does not influence social responsibility, the sharia supervisory board does not affect social responsibility, and partially there is a positive and significant influence between corporate governance on Islamic social responsibility in sharia banking in the period 2015-2019.

Implementation of Anti-Fraud and Mediation Strategies as Alternative Dispute Resolution in Islamic Banks: Approaches and Impacts

Abstract
 Along with the growth of Islamic banks, the level of problems faced by Islamic banks has also increased. One thing that should be observed is the occurrence of fraud in various forms. If this happens, fast and appropriate steps are needed so that fraud can be detected and the problem resolved early on because fraud that occurs if it is not immediately addressed and drags on, the potential for loss and harm to the community (customers) is very large and ultimately leads to on the loss of public trust in Islamic banks. Financial Services Authority Regulation No. 39/POJK.03/2019 concerning the Implementation of the Anti-Fraud Strategy, it is sufficient to regulate the strengthening of the internal control system and to balance it, a dispute resolution pattern is needed without eliminating the bank's obligation to report and supervise. mediation, which is actually hinted at in the Qur'an with the term Al Shulhu, is an alternative so that disputes can be simultaneously resolved. The mediation model offered is to mediate internally within banking institutions by independent mediators who are appointed and become members of the BPS (Sharia Supervisory Board). is through litigation institutions, namely the Religious Courts.

IMPLEMENTATION OF DSN-MUI FATWA ON SHARIA INSURANCE PRODUCTS AT PT. ASURANSI TAKAFUL PALEMBANG BRANCH

Insurance problems do not only stop at transactions, but also at investments. Most of the insurance purchased by the public is actually insurance that contains maysir, gharar, and usury. This means that the money received from the investment received by the customer is also not maintained as halal. It is different from investing in Sharia insurance because there is a Sharia Supervisory Board which ensures that all insurance mechanisms and investment allocations do not conflict with Sharia law. Sharia Insurance Companies are entrusted by the participants to manage premiums, develop in a lawful way, provide compensation to those who experience disasters according to the contents of the agreed agreement deed, based on the characteristics of takafuli, tabarru and mudharabah.This study aims to analyze how the implementation of the DSN-MUI fatwa regarding general guidelines for sharia insurance at PT Asuransu Takaful.This study uses a Qualitative Approach that is related to phenomena that refer to the actions of economic actors, namely humans who act around economic phenomena as well as in consumption, production and distribution with all kinds of transaction derivatives and their interactions. The research results show thattabarru funds that has been collected is managed by the company on the basis of wakalah through insurance invested in various sharia investment instruments so that the funds are more productive. The results of the tabarru' investment are actually purely the rights of the participants, while the insurance company can obtain profit sharing from the investment through a tijarah contract. Companies can also benefit from wakalah bil ujrah contracts. This is in accordance with the DSN MUI fatwa No.DSN-MUI No.21/DSN-MUI/X of 2001 concerning General Guidelines for Sharia Insurance

Human Capital, Quality of Sharia Supervisory Board and Maqasid Shariah Based Performance: Cross Country Evidence

The purpose of this study is to examine the relationship between human capital (HC), quality of the shariah supervisory board (SSB) and performance of maqasid shariah-based Islamic banks. This study uses secondary data from the Bankscope database of 2014 to 2018. The research samples comprised 75 banks from a total population of 96 banks. Using the dynamic panel regression two-step generalised method of moments (GMM), this study revealed that HC has a significant and positive influence on sharia maqasid-based performance. SSB quality has a significant and negative effect on Islamic banks' performance. These findings support the resources-based theory that assumes more efficient human capital can facilitate the achievement of better organisation performance. The results may serve as a guideline for Islamic bank managers to enhance their bank human capital as it has a positive relationship with maqasid sharia-based performance.

Doktrin Business Judgement Rule pada Bank dengan Prinsip Syariah


 The Board of Directors is one of the organs of a Limited Liability Company which has great duties, responsibilities and authority in managing the company, as well as directors of Islamic banks whose legal entity is also a Limited Liability Company. In carrying out their duties, the directors may take actions that result in losses for the company, and for this the directors must be held accountable. However, the business judgment rule doctrine suggests that the board of directors may not be held responsible for the company's losses as a result of its management as long as the board of directors is proven to have managed it in good faith and in accordance with the company's Articles of Association. For directors at Islamic banks, this doctrine is only one of the reasons that can cause directors to act professionally without fear of being wrong. In addition to the doctrine, the existence of the Sharia Supervisory Board (DPS) and commissioners is important because they participate in supervising and providing advice on the actions of the directors, and the main thing above all is the belief in the existence of divine accountability, all of which become one unit which in the end can give rise to actions that are solely for the benefit of the company and welfare.
 Keywords: Board of Directors, business judgment rule, Islamic bank

Characteristics of the Sharia Supervisory Board (SSB) And Investment Account Holders (IAH) To Islamic Social Responsibility Disclosure (ISRD) In Islamic Banks

This study was conducted to examine the effect of education level on Sharia Supervisory Board (SSB), financial and non-financial SSB, and Investment Account Holders (IAH) on Islamic Social Responsibility Disclosure (ISRD) using the control variable of firm size. The object of the research is Islamic banks in the four countries with the highest percentage of poor people in the selected regional division of Asia and Europe, namely Indonesia (Southeast Asia), Bangladesh (South Asia), Jordan (West Asia), and Turkey (Southeast Europe) which publish annual reports in 2013-2019. The results showed that SSB education level and firm size had a positive effect on ISRD, while financial and non-financial fields had no effect on ISRD. Meanwhile, IAH has a negative effect on ISRD. Practically, this research can provide consideration and input for Islamic Bank regulators in evaluating existing regulations. Future research is expected to add proxies for SSB characteristics and other variables in testing the effect of Islamic bank ISRD quality