scholarly journals GOOD CORPORATE GOVERNANCE (GCG) PRINCIPLE IN SHARIA BANKING: AN ISLAMIC LAW PERSPECTIVE

2021 ◽  
Vol 5 (2) ◽  
pp. 242
Author(s):  
Suryani Suryani ◽  
Yudi Ahmad Faisal ◽  
Muhammad Anwar Fathoni ◽  
Lukman Santoso
Keyword(s):  
Corporate Governance ◽  
Islamic Law ◽  
Human Life ◽  
Rapid Development ◽  
Islamic Banking ◽  
Business Decision ◽  
The Public ◽  
Good Corporate Governance ◽  
Maximum Protection ◽  
Banking Development

The implementation of Islamic economy in Indonesia is due to the fact that Islam has a comprehensive and universal teaching in all human life aspects, including economy. One encouraging Islamic banking development in Indonesia is indicated by the operation of banks accommodating the Sharia principles. The rapid development of Sharia banking requires an immediate implementation of Good Corporate Governance (GCG) System to provide a maximum protection for the stakeholders, especially customers. The implementation of GCG is expected to help Sharia banking minimize the poor financing quality, increase the bank assessment accuracy, infrastructure, and business decision making quality as well as become the early detection to high risk business areas, products, and services. The implementation of GCG system is greatly important since Sharia banking is the intermediary institution requiring the public or stakeholders’ trust.

scholarly journals 'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION

2021 ◽  
Vol 18 (2) ◽  
pp. 173-189
Author(s):  
Sharifah Faigah Syed Alwi ◽  
◽  
Fateha Abd Halim ◽  
Tengku Dewi Ahdiyaty Tengku Ahmad Mazlin ◽  
Aizurra Haidah Abdul Kadir ◽  
...  
Keyword(s):  
Qualitative Methodology ◽  
Islamic Law ◽  
Human Life ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Structured Interviews ◽  
The Public ◽  
Library Research ◽  
Banking Institutions ◽  
Banking Operations

Bank Negara Malaysia (BNM) had introduced Value-Based Intermediation (VBI) initiatives to help Islamic banks implement a structuralised form of maqasid al-shariah (objectives of shariah (Islamic law)) in their banking operations. Thus, questions were raised by the public on whether or not Islamic banking institutions in Malaysia had been achieving maqasid al-shariah in their banking operations prior to VBI. This paper aims to discuss the real concept of maqasid al-shariah that should be realised in Islamic banks and investigate whether Islamic banks had truly been achieving maqasid al-shariah in their banking operations before the introduction of VBI. Library research is conducted to obtain information on maqasid al-shariah and the qualitative methodology is adopted to gain information from three bankers representing three Islamic banks in Malaysia via semi-structured interviews. The researchers found that the fundamental concept of maqasid al-shariah in Islamic banks includes the protection of religion, life, intellect, progeny and wealth in human life through the products and services offered by the banks. The Islamic banks were found to have developed their products and services to achieve maqasid al-shariah even before VBI was introduced by BNM. However, with VBI, a proper framework in achieving maqasid al-shariah has been developed.

scholarly journals GOOD CORPORATE GOVERNANCE (GCG) DALAM PERBANKAN SYARIAH

2015 ◽  
Vol 16 (01) ◽  
Author(s):  
Abdul Haris Romdhoni
Keyword(s):  
Corporate Governance ◽  
Islamic Law ◽  
Islamic Banking ◽  
Positive Contribution ◽  
Islamic Banks ◽  
Good Corporate Governance ◽  
A Value ◽  
Leadership And Organization

This study is about good corporate governance is an increasingly crowded studied both in the acadimician and practiciant. With good corporate governance are applied consistently positive for the Islamic banks, due to the good corporate governance include things that are in line with Islamic law such as transparency, independence, accountability and responsibility.               Therefore good corporate governance will create a culture of superior companies, so that with the superior culture of what the objectives of the company will be more easily achieved. In addition, a culture of excellence will form a dynamic working atmosphere and professional.            Good corporate governance will also strengthen the system so that the function of leadership and organization will establish a value. If it will continue on an ongoing basis it will make a positive contribution that benefits the company, or Islamic banking. Trust will also be obtained both from internal and external company or Islamic banks.

Good Corporate Governance Principles in Indonesian Syariah Banking

2020 ◽  
Vol 2 (1) ◽  
pp. 8-13
Author(s):  
Andrew Shandy Utama
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Islamic Law ◽  
Good Governance ◽  
Banking System ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Good Corporate Governance ◽  
Conventional Banks

Islamic banks are banks that carry out their business activities based on the principles of Islamic law in banking activities based on fatwas issued by the National Sharia Council of the Majelis Ulama Indonesia. This research aims to explain the principles of Good Corporate Governance in Islamic banking in Indonesia. The method used in this research is normative legal research. The results of the research explained that to maintain the trust of Indonesian people who are predominantly Muslim, Islamic banking must apply the principle of Good Corporate Governance in its management. The application of the principle of Good Corporate Governance in Islamic banking is strictly regulated in Article 34 Paragraph (1) of Law Number 21 of 2008, which emphasizes that Islamic banks must implement good governance that includes the principles of transparency, accountability, responsibility, professionalism and fairness in carrying out its business activities. Form of application of the principles of Good Corporate Governance in Islamic banking is supervision conducted by the National Sharia Council of the Majelis Ulama Indonesia in general and the Sharia Supervisory Board specifically in each Islamic bank. Based on data from the Financial Services Authority in 2017, currently there are 13 Islamic banks in Indonesia, 13 Islamic business unit of conventional banks, and 102 Islamic rural banks. This is evidence of the existence and development of Islamic banking that is significant in the national banking system.

Analisis Kinerja Keuangan Bank Aceh Setelah Konversi Periode 2016-2018 Berdasarkan Peraturan Otoritas Jasa Keuangan Nomor 8/POJK.03/2014

2019 ◽  
Vol 4 (1) ◽  
pp. 43
Author(s):  
Hanifa Assofia
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Islamic Law ◽  
Financial Statements ◽  
Risk Profile ◽  
Bank Capital ◽  
Collection Method ◽  
Descriptive Research ◽  
Good Corporate Governance ◽  
Quantitative Descriptive

<p>This research aims to find out how Bank Aceh's financial performance after conversion in terms of earnings and capital. The type of research used is quantitative descriptive research. The data collection method used is the documentation method based on the data in the form of quarterly financial statements for the 2016-2018 period published. The method of data analysis in this study is by using the RGEC method (Risk Profile, Good Corporate Governance, Earning and Capital). The results of the study show that Bank Aceh's financial performance in terms of profitability ranks 2, with the definition that profitability is adequate, profit exceeds the target and supports the growth of bank capital. Bank Aceh's decision to convert to sharia as a whole was a very appropriate decision because it was able to show good performance, besides that it also supported the Aceh Government in carrying out its programs to enforce Islamic law. Bank Aceh's financial performance in terms of capital also ranks 2, with the definition that banks have adequate capital quality and adequacy relative to their risk profile, which is accompanied by strong capital management in accordance with the characteristics, scale of business and the complexity of the bank's business.</p>

scholarly journals MENILAI TINGKAT KESEHATAN BANK DENGAN ANALISIS METODE RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS, CAPITAL PADA BANK SYARIAH DI INDONESIA

2020 ◽  
Vol 6 (1) ◽  
pp. 139-160
Author(s):  
Hendra Galuh Febrianto ◽  
Amalia Indah Fitriana
Keyword(s):  
Corporate Governance ◽  
Optimal Level ◽  
Risk Profile ◽  
Business Strategies ◽  
Islamic Banking ◽  
Risk Profiles ◽  
Good Corporate Governance ◽  
And Performance ◽  
Financial Research ◽  
Bank Soundness

ABSTRACT In the banking world of soundness, banks are very important for the formation of trust. Trust and loyalty to banks is a very helpful factor and makes it easier for bank management to develop good business strategies. Bank Soundness Levels are results issued by banks which are carried out on bank risk and performance (Bank Indonesia Regulation Number: 13/1 / PBI / 2011). If more than conventional banking with Islamic banking, conventional banking finance is better than Islamic banking. This is blessed with poor sharia banking (corporate governance) management. In order to be able to carry out its functions properly, banks must have sufficient capital, ensure the quality of their assets properly, be well managed and managed based on the principle of prudence, generate sufficient profits to maintain an increase, and support liquidity so that it can be adjusted to their needs. Therefore banks are required to be able to achieve and maintain a good and optimal level of performance, because the level of bank performance can increase the level of trust and loyalty needed by the wider community to use the products, services and financial activities of the bank. The purpose of this study is for advanced financial research with analysis of Risk Profiles (Risk Profiles), Good Corporate Governance (GCG), Profitability (Income), and Capital (Capital) which is hereinafter abbreviated as RGEC with the final aim of research for the needs of Sharia banking management in accordance with the latest Bank Indonesia and OJK regulations. This type of research uses descriptive research proposed in the RGEC analysis (Risk Profile, Good Corporate Governance, Income, and Capital) at Islamic Banks in Indonesia. from 2013 to 2017. Keywords: Risk Profile, Good Corporate Governance, Income, Capital, Bank Soundness   ABSTRAK Dalam dunia perbankan tingkat kesehatan bank sangat penting bagi pembentukan kepercayaan. Kepercayaan dan loyalitas nasabah terhadap bank merupakan faktor yang sangat membantu dan mempermudah pihak manajemen bank untuk menyusun strategi bisnis yang baik. Tingkat Kesehatan Bank adalah hasil penilaian kondisi bank yang dilakukan terhadap risiko dan kinerja bank (Peraturan Bank Indonesia Nomor: 13/1/PBI/2011). Jika dibanding antara perbankan konvensional dengan perbankan syariah, kinerja keuangan perbankan konvensional lebih baik daripada perbankan syariah. Hal ini dikarena tatakelola (good corporate governance) perbankan syariah yang masih buruk. Agar dapat menjalankan fungsinya dengan baik, bank harus mempunyai modal yang cukup, menjaga kualitas asetnya dengan baik, dikelola dengan baik dan dioperasikan berdasarkan prinsip kehati-hatian, menghasilkan keuntungan yang cukup untuk mempertahankan kelangsungan usahanya, serta memelihara likuiditasnya sehingga dapat memenuhi kewajibannya. Oleh karena itu bank dituntut untuk bisa mencapai dan mempertahankan tingkat kinerja yang baik dan optimal, karena tingkat kinerja bank yang baik dapat meningkatkan kepercayaan dan loyalitas nasabah maupun masyarakat luas untuk menggunakan produk, jasa dan aktivitas keuangan dari bank tersebut. Tujuan penelitian ini adalah untuk menilai tingkat kesehatan keuangan dengan analisis Profil Risiko (Risk Profile), Good Corporate Governance (GCG), Rentabilitas (Earnings), dan Permodalan (Capital) yang selanjutnya disingkat RGEC dengan tujuan akhir merekomendasikan kebijakan untuk memperbaiki manajemen perbankan Syariah yang sesuai peraturan Bank Indonesia dan OJK yang terbaru. Jenis penelitian ini menggunakan penelitian deskriptif yang berfokus pada analisis RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) pada Bank Syariah di Indonesia. dari tahun 2013 sampai 2017. Kata kunci: Risk Profile, Good Corporate Governance, Earnings, Capital, Tingkat Kesehatan Bank

scholarly journals Implementation of Social Culture in Corporate Governance: A Literature Study

2019 ◽  
Vol 11 (1) ◽  
pp. 293
Author(s):  
Mukhtaruddin Mukhtaruddin ◽  
M. Adam ◽  
Isnurhadi Isnurhadi ◽  
Luk Luk Fuadah
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Literature Study ◽  
Social Culture ◽  
The Public ◽  
Good Corporate Governance ◽  
The People ◽  
Governance Index

Good corporate governance (GCG) is a principle implemented by the company to ensure that the interests of stakeholders are not neglected. GCG consists of five main pillars which are transparency, accountability, responsiveness, independency, and fairness. In Indonesia, GCG implementation has not been effective enough as it is only necessarry for large companies and the public. The instrument used to assess GCG implementation is not appropriate either, examples of such are its portion, the existence and role of independent commissioners, portion, the existence and role of the audit committee, and ownership structure. This paper analyzes the implementation of culture found in Indonesian people living in GCG system. With the implementation of this social culture, the corporate GCG is better in its implementation because it is built on the noble values of the people. It then became the Pancasila which is the philosophy of Indonesia as such the the GCG implementation is accessed using the Pancasila Corporate Governance Index (PCGI).

scholarly journals Pengaruh Good Corporate Governance Terhadap Kualitas Laba Perusahaan (Studi pada Perusahaan Sektor Consumer Goods dalam Bursa Efek Indonesia Periode 2016-2018)

2020 ◽  
Vol 12 (2) ◽  
pp. 215-222
Author(s):  
Lisa J. C. Polimpung
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Coefficient Of Determination ◽  
Managerial Ownership ◽  
The Public ◽  
Good Corporate Governance ◽  
Corporate Earnings ◽  
Earning Quality

Financial statements reflect the state of the company where in a financial statement a person can get various kinds of information where one of them is profit. Before investors make an investment they will use information about earnings for their consideration. This causes earnings quality to be one of the most important aspects because it is used in evaluation materials to measure the performance of a company because investors expect quality earnings. Earnings quality is one of the driving factors used by investors before making investment decisions. This study wants to see whether the variables contained in good corporate governance which are divided into managerial ownership, institutional ownership, the size of the public accounting firm, audit committee and committee board have an influence on the quality of corporate earnings. This study conducted a study of companies listed on the Indonesia Stock Exchange in the period 2016-2018 where the number of observations was 60 observations and examined using the calculation of the coefficient of determination and multiple regression. The results found are managerial ownership and audit committee have an influence on earnings quality while other variables have no influence.  Keywords: Good Corporate Governance, Earning Quality

scholarly journals The Implementation of Business Judgment Rule Principle in Managing the Company

2020 ◽  
Vol 3 (2) ◽  
pp. 32
Author(s):  
Busyra Azheri ◽  
Upita Anggunsuri
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Legal Protection ◽  
Business Decision ◽  
Business Judgment Rule ◽  
Good Corporate Governance ◽  
Reputation Risk ◽  
The Board Of Directors ◽  
Credit Agreement ◽  
Branch Office

A business decision is very important to determine the quality of the Board of Directors in carrying out their duties professionally and responsibly as expected by Good Corporate Governance (GCG). The effectiveness of the Board of Directors is the center of the implementation of Good Corporate Governance. Bank Business is very risky (such: credit risk, reputation risk, etc.). The Board of Directors in making a business decision, will always face unpredictable condition. In Banking practice, the Head of Branch Office Bank is the extension of Director, if the Head of Branch Office Bank signs credit agreement out of the rules (plafond). His action has categorized as ultra vires, so the consequence is the Head of Branch Office Bank can be held responsible for his action. In this case, the Board of Directors has not taken responsibility for the action of the Head of Branch Bank, based on Business Judgment Principle, the Director has not taken its responsibility for ultra vires act which is done by the Head of Branch Office Bank, as along as Director has managed the Company in good faith, carefully and does not against the law. Therefore, Business Judgment Principle gives legal protection to the Director in making a business decision

scholarly journals Maqasid al-shariah: suatu kajian terhadap ijtihad Ali ibn Abi Thalib

2012 ◽  
Vol 12 (1) ◽  
pp. 21
Author(s):  
Eficandra Eficandra
Keyword(s):  
Public Good ◽  
Islamic Law ◽  
Human Life ◽  
The Other ◽  
The Public ◽  
Other Hand ◽  
Good For ◽  
Life On Earth ◽  
Goals And Objectives

Ijtihad conducted by Ali ibn Abi Talib continuously to understand in depth the purpose of Islamic law and reason for its implementation, and to realize maslahah (the public good) for human life on earth. This Ijtihad was always supported by nas the Qur’an’s and Sunnah’s text) and also according to the spirit of Shari’ah. The results of Ali’s ijtihad if linked with the approach and application of maqasid al-shari’ah (the goals and objectives of Islamic law) as the study of usul al-fikih (the methodology of Islamic law) had many similarities. In another sense, Ali ibn Abi Talib was really smart to understand and apply maqasid al-shari’ah in the five types of maslahah, namely faith or religion, life or human self, intellect, lineage or posterity, and property or wealth. Likewise, in the application of the five maslahah, levels and priorities in the form daruriyyat (the essential benefits), hajiyyat (the complementary benefits), and tahsiniyyat (the embellishment benefits) was always be considered by him. On the other hand, if there was a clash between one maslahah with another maslahah, Ali ibn Abi Talib solved it by consideration of the level and priority in the implementation of mas}lah}ah to be realized.

scholarly journals Analysis on Corporate Governance Influences toward Banking Efficiency with Bank Category as Moderator Variable

2015 ◽  
Vol 6 (1) ◽  
pp. 127 ◽  
Author(s):  
Lidiyawati Lidiyawati
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Islamic Law ◽  
Financial Institution ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Moderator Variable ◽  
Islamic Bank ◽  
Data Limitations ◽  
Conventional Bank

Corporate governance system of Sharia financial institution that based on Islamic law may result more  variables principles then conventional owns. The restriction of usury are highly speculative transaction, embedded prohibited matter are main features in Sharia business institution. Sharia Supervisory Board, as board that supervises banking practices conforms to Sharia stipulations, hold strong important role within Islamic banking. Both important points above had direct effects on efficiency which attained by Islamic banking compared with conventional banking. This study examines the influence of corporate governance implementation toward efficiency banking sector with bank category as moderator variable. This study hypothesize that corporate governance has significant influences toward bank’s efficiencies, the influence of corporate governance toward Islamic bank efficiencies is higher than conventional bank, and level of Islamicbank efficiencies is higher than conventional bank. Measurement of efficiencies is using Stochastic Frontier Approach program, and then using SPSS in procces hypothetical model. The results of the study do not support the hypothesis. Examined result shows that statically corporate governance is not influenced by bank efficiency achievement. Corporate governance influences over Islamic bank has not show higher significance than conventional and Islamic bank efficiencies remain steady. Data limitations, complexity of the efficiency measures and the complexity of the operation of Islamic banks may explain the finding.

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