THE PERFORMANCE OF ISLAMIC BANKING BASED ON SHARIA MAQASHID INDEX (SMI)

Suci Aprilliani Utami, Yana Rohmana, Firmansyah Firmansyah, Ripan Hermawan

Abstract


Sharia Maqashid Index (SMI) is a model for measuring Islamic banking performance based on maqashid sharia, so that the objectives to be achieved include individual education (tahdzib al-Fard), creation of justice (Iqamah al-Adl) and achievement of benefit (Jalb al-Maslahah). However, the Sharia Maqashid Index in Islamic Commercial Banks has not experienced a significant increase, so a strategy is needed to improve the performance of Islamic banking. Good Corporate Governance in Islamic banking is one of the factors that can affect the Sharia Maqashid Index. This study aims to determine the impact of the implementation of Good Corporate Governance on the Sharia Maqashid Index in Islamic banking in Indonesia. The sampling technique in this study was a saturated sample with a sample of 13 Islamic Commercial Banks in Indonesia. The method used in this research is explanatory method with a quantitative approach. The results showed that Good Corporate Governance had a significant effect on the Sharia Maqashid Index.


Keywords


Islamic Economics and Finance

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DOI: https://doi.org/10.17509/rief.v4i2.41115

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