Good Corporate Governance and Sharia Banking Performance  Based on Maqasid Al-Sharia in OIC Countries

Nisrina Ikhfadhillah Mulyani; Purbayu Budi Santosa; Mohamad Egi Destiartono

Good Corporate Governance and Sharia Banking Performance Based on Maqasid Al-Sharia in OIC Countries

Nisrina Ikhfadhillah Mulyani, Purbayu Budi Santosa, Mohamad Egi Destiartono

Abstract

The development of Islamic banking assets in OIC countries requires performance evaluation, but conventional financial ratios are still used. This study aims to explore the relationship between Good Corporate Governance variables (Board of Commissioners, Independent Commissioners, Sharia Supervisory Board, and Audit Committee) and Maqasid-based Sharia banking performance. Using the Maqasid-Based Performance Evaluation Model (MPEM), data from 22 Islamic banks in 7 OIC countries (2018-2022) with a fixed securities model were analyzed. The findings indicate that the Board of Commissioners and Independent Commissioners influence Maqasid-based performance, whereas the Sharia Supervisory Board and Audit Committee do not have a significant impact. The majority of banks have a low Maqasid performance index, indicating a reliance on conventional systems despite Sharia compliance.

Keywords

Good Corporate Governance; Maqasid Sharia; Performance; Sharia Banking

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DOI: 10.15408/aiq.v16i2.41291