Sharia Supervisory Board Research Articles

Improving The Islamic Banks Competitiveness Through Efficiency

The Islamic banking industry is one of the important factors in economic development so it must have competitiveness to be able to win the competition. Therefore, to have strong competitiveness, the efficiency level of Islamic banks must continue to be optimized. This study aims to determine the efficiency level of Islamic banks and find the factors that influence it by considering internal and external factors. The results showed that only 14.42% of Islamic banks had experienced optimal efficiency even though this study found that efficiency had a positive effect on increasing competitiveness. Important variables that can improve efficiency are age and liquidity. Besides, the board of commissioners also provides its role in managing the level of liquidity to achieve optimal efficiency, but does not play a good role in long-standing banks. In contrast to the sharia supervisory board that has succeeded in carrying out its functions in banks that have long existed to improve efficiency, and vice versa does not play a role in strengthening the level of liquidity to increase efficiency. From external factors, gross domestic product is proven to weaken the relationship between age and liquidity with efficiency.

PENGARUH ISLAMIC CORPORATE GOVERNANCE DAN INTERNAL CONTROL TERHADAP FRAUD PADA BANK UMUM SYARIAH DI INDONESIA PERIODE 2016-2020.

This study aims determine the effect of Islamic corporate governnace and internlal control on fraud in Islamic comercial banks in Indonesia for the 2016-2020 period. This study uses the independent variable Islamic Corporate Governance by using two indicators, namely the Sharia Supervisory Board and the Board of Directors and Internal Control. While the dependent variable is Fraud. Secondary data is used in this study. This study uses a quantitative approach and uses Panel Data Regression Analysis, Model Testing, Classical Assumption Test, Hypothesis Testing and using the Eviews 8 application. The results of this study show that the Sharia Supervisory Board, Board of Directors and Internal Control have an effect on Fraud . Then the results of the Coefficient of Determination test show that the Adjusted R-square value is 51%, meaning that fraud can be explained by the sharia supervisory board, the board of directors and internal control by 51% and the remaining 40% is explained by other variables.
 Keywords: Islamic Corporate Governance, Internal Control, Fraud, Islamic Commercial Bank.

Board Characteristic and Shari’a Banks Performance: Evidence from Indonesia and Malaysia 2015-2020

This study aims to examine the effect of board characteristics on the performance of Islamic banks (IBs) in Indonesia and Malaysia in 2016-2020. The sample of this study includes 11 Islamic commercial banks in Indonesia and 7 Islamic commercial banks in Malaysia. The analysis method uses panel data regression which is processed with the help of software Eviews 12. Performance is measured by Return On Assets (ROA), Return On Equity (ROE), and Non-Performing Financing (NPF), Board characteristics are measured by the size of the board of directors, the proportion of directors women, the expertise of the board of directors, the size of the sharia supervisory board (DPS), the proportion of female DPS and the expertise of the DPS. The results of the study show that overall Islamic Corporate Governance and Corporate Governance have a positive effect on the performance of Islamic Banks (IBs).
 Keywords: Kata kunci: Islamic Banks; Islamic Corporate Governance; Corporate Governance; Performance Islamic Bank

The Role of Sharia Supervisory Board in Implementing Public Trust on Sharia Banks

This study aims to see how implementing the Sharia Supervisory Board and its impact on providing public trust in Islamic banks. This study uses a quantitative approach with the method of Systematic Literature Review from various journals. With the Systematic Literature Review method, the research identifies all empirical evidence, where the identification aims to answer questions such as "What is the role of the sharia supervisory board on public trust?", "Implementation of the sharia supervisory board on sharia banking?". The analysis results found that the Sharia Representative Council (DPS) has a high level of helping to attract public interest. This is because the higher the spread of DPS, the public's knowledge about banking sharia will be increasingly known. This finding shows that Sharia Supervisory Board plays an essential role in providing public confidence to be interested in being part of a sharia bank because, so far, there are known factors that attract the public in the form of external factors such as marketing factors, psychological factors, cultural factors, social factors, and social factors. Personality so that this can be used as a view for further research that the Sharia Representative Council also still plays an essential role in contributing to society.

Pengaruh Kinerja Keuangan dan Good Corporate Governance terhadap Potensi Kebangkrutan Bank Muamalat Indonesia

This study aims to examine the effect of financial performance and GCG variables represented by the presence of the Sharia Supervisory Board on the potential for bankruptcy of Bank Muamalat Indonesia. The type of data used is secondary data sourced from financial statements and corporate GCG reports using multiple linear analysis data analysis methods with data processing tools using EViews 10 software. The results of this study indicate that NPF has a significant negative effect, FDR has a significant negative effect, and CAR has a significant negative effect. significant positive on the potential for bankruptcy of Bank Muamalat Indonesia, then the presence of DPS also has a significant effect. positive effect in reducing the risk of bankruptcy.

Islamic governance, sharia supervisory board, environmental performance, and Islamic social reporting: Evidence from Indonesia

Islamic social reporting has been recognised as a major concern in Islamic accounting research in Indonesia. However, research on this issue still remains more paucity of evidence. The purpose of this study was to determine the effect of Islamic governance scores, sharia supervisory board education, cross membership of sharia supervisory boards, and environmental performance on Islamic social reporting. The population used in this study is Sharia Commercial Banks listed on the Financial Services Authoruty (OJK) during 2008-2020. The sampling technique used was purposive to obtain a sample of 150 companies that met the criteria. This study employed multiple regression analysis using the SPSS program to analyze the data. The results of this study showed that Islamic governance score and environmental performance had a positive effect on the disclosure of Islamic social reporting. On the other hand, the result further indicated that the education of the sharia supervisory board and cross-membership of the sharia supervisory board had no effect on the disclosure of the Islamic social reporting disclosure. The results contribute to providing fruitful insights to Islamic banks that Islamic governance score and environmental performance are two crucial factors determining the Islamic social reporting.

Penerapan Fatwa DSN-MUI Nomor 27/DSN-MUI/III/2002 pada Pembiayaan Barang Modal

This research was motivated by the existence of a capital goods financing product using an ijarah Muntiyah Bittamlik contract at KSPPS BTM Pekalongan. The financing product is a form of product innovation that aims to meet the needs of the community. The objectives of the research are: 1) to know the mechanism of implementing the ijarah Muntiyah bittamlik contract on capital goods financing products; and 2) analyzing the application of the DSN-MUI Fatwa Number 27/DSN-MUI/III/2002 on capital goods financing products. This research is an empirical legal research using a qualitative approach. Primary data sources are obtained from interviews with related parties, such as employees, customers, and the Sharia Supervisory Board. Meanwhile, secondary data sources are obtained from literature studies, such as books and journals that are relevant to the research issue. The results show that, the transfer of ownership rights to goods begins with the rental of objects/goods to customers within a certain period of time with a rental payment system, followed by the transfer of ownership rights to objects through grants to customers.

Peran Dewan Pengawas Syariah dalam Pengawasan di Bank Syariah (Studi Kasus Bank Sumut Syariah Kecamatan Tebing Tinggi)

Supervisory Journal is part of the management function. Supervision is the process of ensuring that organizational and management objectives are achieved. Functionally, there are many names for control, such as evaluating, assessing, and correcting. It's just that controlling is used more because it contains connotations that include setting standards, measuring activities, and taking corrective actions that are not objective. The supervisory body is also independent, in the sense that its work is not related or influenced by other parties, both internal and external to the company. Thus, the assessment carried out is expected to be objective so that an evaluation can be carried out for changes for the better. This research is a research based on a conceptual study. By only using secondary data obtained from: journals, books and writing materials related to the theme of this research, the Sharia Supervisory Board (DPS) is an independent body placed by the National Sharia Council (DSN) in Islamic financial and banking institutions. To ensure the effectiveness of DPS performance Apart from being seen from the performance of their duties, the effectiveness of DPS members must consist of carrying out their duties as supervisors and must be independent, without influence from any party, both from the bank and from parties other than the bank.

Peran Perbankan Syariah Dengan Prinsip Prinsip Syariah Konvergensi

This research is entitled The Role of Islamic Banking with Convergent Sharia Principles on Indonesia's Socio-Economic Construction. This study aims to determine whether sharia banking and sharia principles in Indonesia are in accordance with Islamic law and to find out how the convergence of sharia principles to the socio-economic construction of Indonesia. The research method used is a normative juridical approach with the data used are secondary data, and the data is analyzed juridically and quantitatively which is then interpreted from the results of data analysis in the form of deductive conclusions. Islamic banks are banks whose activities refer to Islam and in their activities do not charge interest or pay interest to customers. Islamic bank rewards received or paid to the bank, the agreement (contract) contained in Islamic banking must be subject to the terms and pillars of the contract as stipulated in Islamic law. Basically, Islamic banking in Indonesia has not been running in accordance with the rules of sharia law, therefore the Sharia Supervisory Board does not yet have clarity regarding the scientific capacity and capability of its interest in Indonesian economic issues, especially sharia banking. For this reason, there needs to be transparency from the MUI towards Islamic banks regarding the recommended DPS candidates, even if it is necessary there must be a fit and proper test mechanism for DPS candidates, especially those not from academia.

INTELLECTUAL CAPITAL AND SOCIAL PERFORMANCE OF ISLAMIC BANKS IN INDONESIA AND MALAYSIA: THE MODERATING ROLE OF SHARIA SUPERVISORY BOARDS

The purpose of this study is to investigate the relationship between Intellectual Capital (IC) and Social Performance and to further examine whether Sharia Supervisory Boards (SSB) moderate this relationship. This study employed a longitudinal sample of Islamic banks in two countries leading Islamic banking industries in the south-east Asia region, Malaysia and Indonesia, with a sample of 31 Islamic banks during the period 2008-2020. Panel data regression model analysis was applied to test the study research hypotheses. The findings revealed that IC has a positive impact on the social performance of Islamic banks, demonstrating that greater utilization of IC leads to improved social performance. SSB meeting frequency has a positive impact on the social performance of Islamic banks, indicating that the more active the boards are, the more SSB can perform the social performance. Meanwhile, the gender diversity of SSB members has does not influence Islamic banks' social performance. On the moderating role of SSB aspects, which are SSB meeting frequencies representing SSB activities in monitoring and SSB gender diversity, both proven to strengthen the relationship between IC and Islamic banks' social performance. Overall, this research contributes to a better understanding of the impact of IC and SSB governance in improving Islamic banks' social performance functions. This study implies that Islamic banks should be more aware of their intellectual capital resources and the monitoring role of SSB so that the Islamic banks can perform their social functions more optimally. Keywords: Intellectual Capital (IC); sharia supervisory boards; ssb meeting frequency; ssb gender diversity; social performance; islamic banks

Peran Dewan Pengawas Syariah Pada Pembiayaan Murabahah Di BMT Nurul Uswah MWC NU Majenang

BMT Nurul Uswah is one of the Islamic financial institutions that applies sharia principles in its operational activities. Therefore, at BMT Nurul Uswah there is a DPS in charge of overseeing activities to ensure the fulfillment of sharia compliance in BMT operations, one of which is financing products with Murabahah contracts. The problem studied is how the role of the Sharia Supervisory Board in the implementation of sharia compliance in the practice of Murabahah financing is at BMT Nurul Uswah MWCNU Majenang. The method used is field research with a qualitative approach. The results of the first study indicate that the practice of Murabahah financing at BMT Nurul Uswah is not in accordance with sharia compliance because there are characteristics that indicate the existence of gharar and usury. Second, the role of DPS in implementing sharia compliance in the Murabahah contract at BMT Nurul Uswah is good but not optimal, due to the lack of independence and firmness in making decisions because structurally this division is under the control of the founder of BMT NU.

The Role of the Sharia Supervisory Board in Protecting Member Rights on Murabahah Financing Products

The Sharia Supervisory Board's primary responsibility is to monitor and ensure that all business operations at BMT BEST are conducted in accordance with sharia principles as outlined by the National Sharia Council. Qualitative, descriptive methods were employed for this study. The study's findings led to the conclusion that BMT BEST's Sharia Supervisory Board serves primarily as a meeting venue for outside consultants who advise on matters pertaining to the regulation of financial institutions. Policy guidance for BMT BEST's initiatives was contributed by DPS. Because it is simpler to put into reality than other products with similar characteristics, murabaha finance has seen a surge in popularity in recent years. This money can be used for any number of things, including making purchases, investments, etc. To fulfill its duty to safeguard its members against usury transactions on murabahah financing products, BMT works to verify that contracts for murabahah financing implemented at BMT BEST adhere to sharia regulations. To prevent usury transactions, sharia-compliant contracts for murabahah finance are implemented.

Social Reporting by Islamic Banks: The Role of Sharia Supervisory Board and the Effect on Firm Performance

This study aims to explore social reporting by Islamic banks (IB) (referred to as Islamic social reporting, ISR, hereafter) through two streams, i.e., its determinants and consequences on firm performance. Using annual report data from 90 samples of the world’s IB from 2016–2020, this study focuses on the sharia governance implementation through the role of the Sharia Supervisory Board (SSB). The SSB was measured by individual characteristics and IG-Score, representing a combination of dichotomous characteristics of the SSB, which have not been encountered in previous studies. Firm performance as a consequence of disclosure was determined by a more comprehensive approach based on accounting and the stock market. The study’s findings demonstrate the SSB’s beneficial influence on ISR, suggesting that the presence of an SSB can promote ISR practices. Social reporting has been found to have a negative impact on ROA, but it has a positive impact on MTBV and Tobin’s Q. The data suggest that while voluntary reporting practices may cause a short-term decline in profitability, they can have a positive impact on an enterprise’s long-term value.

Pengaruh ukuran perusahaan, profitabilitas, leverage, efisiensi biaya, umur perusahaan dan ukuran dewan pengawas syariah terhadap Islamic social reporting pada perbankan syariah di Indonesia periode 2016-2020

This study aims to explain the variables of firm size, profitability, leverage, cost efficiency, firm age, size of the sharia supervisory board in influencing Islamic Social Reporting. The population in this study is Islamic banking in Indonesia which is registered with the Financial Services Authority (OJK) for the period 2016 – 2020. The data used in this study is panel data from 10 samples of selected companies, with a total sample of 50. Company size and company age have a negative and significant effect on ISR. The size of the sharia supervisory board has a positive and significant effect on ISR. Meanwhile, profitability, leverage, and cost efficiency have no significant effect on ISR.

Sharia Financial Performance Perspective: Business or Compliance Oriented

There is a lot of controversy inthe literature on how to measure the performance of an Islamic Bank (IB). In short, the business model of Islamic banks is different from that of traditional banks. Therefore, the effectiveness of Islamic banks should be measured using the Sharia approach. One of the important pillars of the development of Sharia banking is Sharia compliance. Pillar this is the main difference between Islamic banks and traditional banks. A sharia supervisory board, or sharia supervision, is necessary to ensure the implementation of sharia principles in banking institutions. In this article, we consider the zakat (Islamic tax) as an alternative indicator for measuring the effectiveness of Islamic banks. Zakat in business is very important, both from an Islamic point of view and from the point of view of poverty reduction. Zakat spending by banks can enhance the image of Islamic banks that exist as banking companies operating in accordance with Islamic law.

Supervision Effectiveness DPS Deep Sharia Governance and Guarantee in Sharia Banking in Indonesia

Islamic banking, an indicator of the development of the Islamic economy in Indonesia, where if the Indonesian people are asked about the Islamic economy, then the first thing to highlight is Islamic banking. Currently, the increase in Islamic financial institutions such as Islamic banks has increased significantly. Banuak people who are currently starting to believe in sharia mining lemabags, even so Islamic banks must continue to supervise products in Islamic banks. In the development of Islamic financial institutions, it is certainly inseparable from the Sharia Supervisory Board, which is one of the characteristics compared to conventional banks. Sayriah financial institutions have DPS in governance, where this DPS has a function to supervise the application of sharia principles in each product, besides that DPS must also supervise sharia guarantees, both from the guarantee mechanism to the execution of guarantee collection carried out by Islamic financial institutions.

GOOD CORPORATE GOVERNANCE DALAM PERSPEKTIF KONVENSIONAL DAN ISLAM

The purpose of writing this article is to provide an overview/explanation related to Good Corporate Governance in both conventional and Islamic views. The writing of this article uses the method of literature study or literature study. The stages carried out in analyzing conventional Good Corporate Governance/GCG and Good Corporate Governance in an Islamic view are to collect literature or studies and scientific works that discuss conventional Good Corporate Governance and GCG in an Islamic view. The next step is to identify the problem under study, then classify the problem and make a presentation that discusses the topic under study and then draws a conclusion. The results of Good Corporate Governance (GCG) in terms of conventional and Islamic concepts basically have similarities, the difference is the existence of sharia compliance (sharia compliance) or the application of sharia principles in the operations of Islamic banks and the existence of DPS (Sharia Supervisory Board) which has the task of implementing supervisory function in sharia banking as well as the existence of DSN-MUI (National Sharia Council of the Indonesian Ulema Council).

SHARIA FINANCIAL SERVICES COOPERATIVE IN REVIEW OF FIQH MUAMALAH

Microfinance institutions as one of the pillars of the Indonesian economy by providing financing to small businesses are expected to help in alleviating poverty in Indonesia. One of them is the Sharia Financial Services Cooperative (KJKS) which has sharia-based operational standards. This study aims to see how the KJKS in the Fiqh Muamalah Review. This study uses a literature study method by mapping the themes of previous studies. Search articles using the Google Scholar database with the keywords “fiqh muamalah” OR “fiqh muamalah” OR “fiqh muamalah” AND “sharia financial services cooperatives”. In the period 2017 to 2022, 61 articles were found which were then selected into 37 articles that were considered still relevant to the themes discussed. Of the 37 selected articles, they have been grouped into several themes: 1) Contracts in Islamic cooperatives 2) Sharia Cooperative Services 3) Supervision and Risk Management of Sharia Cooperatives 4) Conformity of the Concept and Relevance of Fiqh Muamalah in Financing Practices 5) Performance of DPS in Sharia Cooperatives. The results of this study are in principle KJKS has carried out operational activities by Fiqh Muamalah, operational activities based on sharia law, regarding human behavior in their lives which are obtained from Islamic arguments in detail. Operational activities of Sharia Financial Services Cooperatives or BMTs are supervised by the Financial Services Authority (OJK), Sharia Supervisory Board (DPS), and the Ministry of Cooperatives and SMEs in each of its activities, however, there are still KJSK that carry out operational activities that are not by fiqh muamalah, this is due to a lack of understanding. concerning fiqh muamalah in the activities of the Sharia Financial Services Cooperative.

Bankruptcy Settlement of Baitul Maal Wa Tamwil in Yogyakarta: An Islamic Law Perspective

This research analyzes the bankruptcy settlement of baitul maal wa tamwil using two perspectives: positive law applied in Indonesia and Islamic law. The research method used in discussing the problem was by conducting normative-juridical research with the maqashid of the sharia approach. The results showed that the leading cause of the bankruptcy of baitul maal wa tamwil in the Special Region of Yogyakarta was the existence of several general problems internally, which included limitations in material law, human resources, legal culture, and supporting infrastructure. Another factor that also affects bankruptcy is the weakness of the internal control system by the Sharia Supervisory Board and externally by the Agency of Cooperative. The ideal settlement of the bankruptcy of baitul maal wa tamwil is the arrangement of a new bankruptcy regulation to accommodate the various rules still spread in several existing laws and regulations.

Can the characteristics of the sharia supervisory board increase the trust of sharia bank customers?

Purpose - This study aims to examine in more detail the characteristics of SSB that will affect the level of trust of Islamic banking customers. The purpose of this study is to understand empirically the relationship between the characteristics of SSB and the trust of Islamic bank customers in Indonesia.Method - A quantitative approach with the panel data analysis method is used to analyze sample data from all Sharia commercial banks in Indonesia in the 2012-2019 period. The independent variable in this study consisted of 6 characteristics of SSB.Result - The results of the study show the facts that the 3 characteristics of SSB are proven to be able to increase customer trust. The three variables are the number of members, financial expertise, and doctoral education.Implication - Islamic Commercial Banks in Indonesia suggest to put more consideration of the number of members, financial expertise, and doctoral education in the recruitment process for the selection of Sharia bank SSB members.Originality - In contrast to previous research which examines the effect of the existence of SSB on customer trust and loyalty, this study seeks to get deeper answers to the input factors of SSB characteristics that really have a positive impact on a positive image and customer trust in Islamic banks.