ANALYSIS OF FINANCIAL PERFORMANCE THROUGH SHARIA COMPLIANCE IN THE ISLAMIC BANKING

Authors

  • Lina Yulianti UIN Sunan Gunung Djati Bandung, Indonesia
  • Risma Karmila UIN Sunan Gunung Djati Bandung, Indonesia
  • Ii Ruhimat UIN Sunan Gunung Djati Bandung, Indonesia

DOI:

https://doi.org/10.15575/aksy.v7i1.42222

Keywords:

Financial Performance, Islamíc Income Ratio, Islamíc Investment Ratio, Profít Sharing Ratío, Sharia Complíance

Abstract

This study aims to prove that financial performance is influenced by Sharia compliance in the Islamic banking industry. Multiple linear regression analysis uses panel data from the annual Sharia banking reports. Purposive sampling was used to select 40 samples of financial data from the Indonesian Sharia banking sector for four years, from 2019 to 2022. The results prove that Sharia compliance proxied by Islamic income ratio (IsIR), profit-sharing ratio (PSR), and Islamic investment ratio (IIR) has simultaneously impacted financial performance in Islamic banking. It is hoped that this research will help the government enhance the overall performance of Islamic banking. There are some recommendations for ‘Bank Indonesía (BI) or the Financial Servíces Authoríty to encourage profit-sharing financing by conducting workshops for Sharia banking and businesses to enhance the understanding and implementation of profit-sharing mechanisms. Strengthen regulations and standards for Sharia Compliance by mandating regular Sharia audits for Islamic banks to ensure continuous adherence to Sharia principles. Furthermore, Islamic banks' management must improve Shari’a compliance in banking applications because the higher the Shari’a compliance, the higher the public confidence in Islamic banking apps. It would help other interested parties and potential investors become part of the Islamic banking sector.

References

Al Amosh, H., Khatib, S.F.A. and Ananzeh, H. (2023). “Environmental, social and governance impact on financial performance: evidence from the Levant countries,†Corporate Governance, Vol. 23 No. 3, 493-513

Asrori., (2011). “Pengungkapan Syari’ah Complience & Kepatuhan Bank Syariah Terhadap Prinsip Syariahâ€, Jurnal Dinamika Akuntansi, Vol.. 3 No. 1.

Azzahra, K. (2020). The Influence Of Intellectual Capital and Sharia Compliance The Banking Financial Performance In Indonesia. JARES (Journal Of Academic Research And Sciences), Volume 5, Nomor 1.

Can. G (2021), "Does Sharia compliance affect financial reporting quality? An evidence from Muslim majority countries", International Journal of Islamic and Middle Eastern Finance and Management, Vol.14 No.1,16-33.

Dewanata et, al. 2016. “The Effect of Intellectual Capital and Islamicity Performance Index to the Performance of Islamic Bank in Indonesia 2010-2014 Periodsâ€. JRMSI: Jurnal Riset Manajemen Sains Indonesia, Volume 7, Nomor 2.

Dwi, N., & Kurniawati, S. L. (2022). “Pengaruh Islamic Corporate Governance, Intelectual Capital & Shari’a Compliance Terhadap Profitabiliitas Pada Bank Umum Syariahâ€. Jurnal Syarikah: Jurnal Ekonomi Islam, Vol.8 No.1

Falikhatun, & Assegaf, Y. U. (2012). Bank Syariah in Indonesia: Compliance with Sharia Principles and Financial Health. CBAM-FE Unissula, 1(1), 245-254.

Hameed, Shaalull., (2004)., “Alternative Disclosure & Performance Measure for Islamic Banks, International Islamic University-Malaysia.

Hamid, A., Majid, M.S.A and Khairunnisah L. (2017). “ An Empirical re-examination of the Islamic Banking Performance in Indonesiaâ€, International Journal of Academic Research in Economics and Management Sciences, Vol. 6. No. 2

Hery. (2018). Analisis Laporan Keuangan: Integrated & Comprehensive. Jakarta: PT. Gramedia.

Huselid, M.A. (1995), “The impact of human resource management practices on turnover, productivity, and corporate financial performanceâ€, Academy of Management Journal, Vol. 38 No. 3, pp. 635-672

Khasanah,A.Nur (2016) “Pengaruh Intellectual Capital Dan Islamicity Performance index teirhadap Kinerja Perbankan Syariah di Indonesiaâ€, Jurnal Nomnal, Volume 5. Nomor 1, 1-18

Maisaroh, Sitii (2015). “Pengaruh Intelectual Capital & Islamicity Performance Index Terhadap Profitability Perbankan Syariah Indonesiaâ€, Jurnal Fakultas Ekonomi UIN Malang

Md Zain, S.N. and Shafii, Z. (2018), “The impact of Shariah governance to financial and NonFinancial performance in Islamic financial institutions (IFIs): a literature survey,†International Journal of Islamic Business, Vol. 3 No. 2, 27-40

Maulidar, A., & Majid, M. S. A. (2020). Do Good Corporate Governance and Financing Risk Management Matter for Islamic Banks’ Performance in Indonesia? Etikonomi: Jurnal Ekonomi, 19(2), 169 – 184.

Mohamed, H. (2018), “Macro and micro-level indicators of maqasid al- Sharī‘ah in socio-economic development policy and its governing framework,†Islamic Economic Studies, Vol. 25 No. 3, 19-44.

Norman, N.M., Haron, R. and Hassan, R. (2018), “Shari’ah supervisory board characteristics effects on Islamic banks’ performance: evidence from Malaysiaâ€, International Journal of Bank Marketing, Vol. 36 No. 2, 290-304

Nur Khasanah, Anita, (2016). “Pengaruh Intelectual Capital & Islamicity Performance Index terhadap Kinerja Perbankan Syariah di Indonesiaâ€, Jurnal Nomnal, Vol. 1 No. 1

Romadhonia, S., & Kurniawati, S. L (2022). “The Effect of Islamic Corporate Governance’, Shari’ah Compliance, Islamic Social Responsibility on the Profitability of Shari’ah Banks.†Ekonomika Syariah: Journal of Economics Studies, Vol. 6 No. 1

Sari, R. D. P., & Giovani, A. (2021). “Analisis Kinerja Keuangan Pada Bank Umum Syari’ahâ€. Jurnal Ilmiah Ekonomi Manajemen: Jurnal Ilmiah Multi Science, Vol. 12 No. 2

Siti Murtiyani and AS Haq. (2012). “Pengaruh Pengungkapan Corporate Social Responsibility (CSR), Good Corporate Governance (GCG), Dan Shariah Compliance Terhadap Kinerja Keuangan Perbankan Syariah,†AT-TAUZI: Jurnal Ekonomi Islam, Vol. 7 No. 2 (2012): 1–16.

Sukardi, Budi. (2012). “Kepatuhan Shari’ah dan Inovasi Produk Bank Syariah di Indonesiaâ€, Jurnal Akademika, Vol. 7 No. 2.

Suciipto, S., Siregar, E., Baining, M., Nurjanah, N., & Rezki, M. (2021). Legitimacy

Problems in Sharia Compliance Due to Fraud at Islamic Banks in Indonesia. Proceedings of the 4th International Colloquium on Interdisciplinary Islamic Studies in Conjunction with the 1st International Conference on Education, Science, Technology, Indonesian and Islamic Studies, ICIIS and ICESTIIS 2021,

-21 October 2021, Jambi, Indonesia.

Syaifullah, Muhamaad, (2021). “Kinerja Keuangan Bank Syari’ah dengan Aset Quality, Earnings, Liquidity, & Sharia Conformityâ€.

Triyuwono (2015), “Perspektiif Metodology & Teory Akuntansi Syariah". Jakarta: PT. Raja Grafindo Persadaa.

Yuniasary, M., & Nurdin. (2019). “ Pengarah Shariah Compliance & Islamic Corporote Governence terhadap Kinerja Keuangan Bank Umum Syariah di Indonesiaâ€. Prosiding Manajemen,V ol. 5 No. 2

Wan Zainal, W.A., Kasim, N., Zakaria, N.B. and Mohamed, N. (2016), “Disputes and resemblance: a comparative analysis of Shariah advisory committee methodology and international indices†Malaysian Accounting Review, Vol. 15 No. 2, pp. 1-10.

Downloads

Published

2025-01-29

How to Cite

Yulianti, L., Karmila, R., & Ruhimat, I. (2025). ANALYSIS OF FINANCIAL PERFORMANCE THROUGH SHARIA COMPLIANCE IN THE ISLAMIC BANKING. Jurnal Ilmu Akuntansi Dan Bisnis Syariah (AKSY), 7(1), 16–27. https://doi.org/10.15575/aksy.v7i1.42222

Issue

Vol. 7 No. 1 (2025): Jurnal Ilmu Akuntansi dan Bisnis Syariah

Section

Articles

Citation Check

License

Lisensi Creative Commons

Jurnal Ilmu Akuntansi dan Bisnis Syariah are licensed under Attribution-ShareAlike 4.0 International