scholarly journals Indonesia Islamic Banking Readiness in Facing the ASEAN Economic Community, in Terms of Islamic Banking Disclosure and Performance Indices

2019 ◽  
Vol 2 (2) ◽  
pp. p25
Author(s):  
Veithzal Rivai Zainal ◽  
Djoko Setyo Widodo ◽  
Iwan Kurniawan Subagja
Keyword(s):  
Corporate Governance ◽  
Social Environment ◽  
Performance Index ◽  
Qualitative Method ◽  
Islamic Banking ◽  
Performance Indices ◽  
Governance Indicator ◽  
Asean Economic Community ◽  
And Performance ◽  
Quantitative And Qualitative Methods

This research is aimed to analyze the level of openness of Indonesia Islamic Banking which is viewed from Islamic Banking Disclosure Index based on Sharia Compliance Indicator, Corporate Governance Indicator and Social/Environment Indicator. This research is used the quantitative and qualitative methods. The use of a quantitative method in this research looks at the evaluation of Islamic Banking Performance Index, and the use of the qualitative method in this research looks at the evaluation of Islamic Banking Disclosure Index. The result of research showed Islamic Banking Disclosure Index of Indonesia Islamic Banking higher than ASEAN Islamic Banking. The average of Islamic Banking Disclosure Index of Indonesia Islamic Banking has amounted 82.71%, higher than ASEAN that is amounted 52.40%. Based on the analysis of Islamic Banking Disclosure Index is concluded that Indonesia Islamic Banking more open to revealing the information/publication related to Sharia Compliance Indicator, Corporate Governance Indicator and Social/Environment Indicator and Islamic Banking Performance Index.

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 VALUE-BASED INTERMEDIATION AND REALISATION OF MAQASID AL-SHARIAH: ISSUES AND CHALLENGES FOR ISLAMIC BANKS IN MALAYSIA

2020 ◽  
Vol 5 (2) ◽  
pp. 34-44
Author(s):  
Wan A'tirah Mahyudin ◽  
Romzie Rosman
Keyword(s):  
Corporate Governance ◽  
Stakeholder Management ◽  
Shareholder Wealth ◽  
Essential Elements ◽  
Islamic Banking ◽  
Successful Implementation ◽  
Islamic Banks ◽  
And Performance ◽  
Stakeholder Needs ◽  
The Relationship

The expectation of stakeholders towards Islamic banks has changed and goes beyond avoiding riba and compliance with Shariah but to become value-based intermediaries and fulfil the objective of Shariah Many studies argue that the goals of Islamic banking should not be restricted to maximizing shareholder wealth but should also entail raising the standard of living and welfare of the community. This paper aims to discuss the issues, trends, and challenges for Islamic banking in Malaysia towards satisfying various stakeholders’ needs through the implementation of value-based intermediation (VBI). VBI has been firstly introduced by Bank Negara Malaysia in 2017. In VBI, maqasid al-shariah is established as the fundamental framework in deciding the underlying values, moral compass, and goals in Islamic finance. Thus, realisation of maqasid al-shariah has created its own challenges in VBI implementation. Some earlier studies have discussed issues related to the principles and approaches related to VBI but neglecting other important mechanisms to drive its successful implementation. This review paper highlighted that corporate governance and performance measures are essential elements in VBI implementation. Future studies are encouraged to further explore the possible indicators that can fairly assess the efforts of Islamic banks in satisfying stakeholder needs in line with maqasid al-shariah. Further studies in corporate governance also deemed important to establish the relationship between the key corporate governance players and stakeholder management in Islamic banks.

Islamic banking in the United Arab Emirates: Is embeddedness a contextual antecedent of performance and corporate governance outcomes?

2019 ◽  
Vol 9 (3) ◽  
pp. 227-247
Author(s):  
Roshni Das
Keyword(s):  
Corporate Governance ◽  
Business Model ◽  
United Arab Emirates ◽  
Business Models ◽  
Transaction Cost Economics ◽  
Performance Outcomes ◽  
Islamic Banking ◽  
Thick Description ◽  
Cultural Aspects ◽  
And Performance

Research issue and theoretical foundation<br/> Embeddedness refers to the financial, operational and structural mooring of an organisation in a particular social system or community. It presents itself as a central tenet of Williamson's (1975) classic theory of Transaction Cost Economics (TCE) and as such is a concept long overdue attention. In this paper, this concept is problematised as a macro- or organisation-level construct, and the paper also explores some of its consequents.<br/> Findings of the study<br/> Using a thick description approach, case study evidence is built for the Islamic Banking (IB) business model. It is shown how this indigenous business model (i.e., IB) has leveraged the power of social networks to build a profitable portfolio of investments over time, in the specific context of the UAE (United Arab Emirates) and its unique socio-political and cultural aspects. Dimensions of the embeddedness construct are proposed. Further, causal linkages are theorised with two distinct but inter-related consequents of embeddedness: corporate governance and performance outcomes of the organisation. It is envisaged that both linkages are mediated by the construct of board interlocks.<br/> Implications<br/> Proximally, this study has the potential to extend scholarship in the domains of business relations, trust and indigenous business models. As a distal possibility, researchers might use it to build on the organisational ecosystem paradigm.<br/> Scope and contributions<br/> The main contribution is to develop the concept of embeddedness. Additionally, this study uses the concept to build contextualised theory pertaining to the network characteristics of an indigenous business model.

Corporate Governance and Performance of Organizations

2018 ◽  
Vol 9 (5) ◽  
pp. 439-446
Author(s):  
Hamid Ait lemqeddem ◽  
◽  
Mounya Tomas ◽  
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Theoretical Foundation ◽  
Quantitative Approach ◽  
Governance Practices ◽  
Deductive Method ◽  
Private And Public ◽  
Is Theory ◽  
And Performance ◽  
Do So

There is renewed interest in the need to focus on corporate governance in an environment where it is a performance imperative for all small and large organizations, private and public, beginner or established.The purpose of this study is to demonstrate the place of corporate governance practices in organizations to ensure that the board, officers, and directors take action to protect shareholder interests and all stakeholders. It is important to focus on the effect of these practices on improving performance and competitiveness. To do so, we opted for the hypothetico-deductive method with a quantitative approach. Our theoretical foundation is theory is agency theory.

Board Effectiveness: An Evaluation based on Corporate Governance Score

Think India ◽  
2015 ◽  
Vol 18 (1) ◽  
pp. 16-23
Author(s):  
Hitesh Shukla ◽  
Nailesh Limbasiya
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Sustainable Growth ◽  
Governance Mechanism ◽  
Minority Shareholders ◽  
Effective Governance ◽  
Performance Orientation ◽  
Corporate Governance Mechanism ◽  
And Performance ◽  
Ethical Governance

Growth, progress, and prosperity of any country depend highly on the corporate governance mechanism of that country. Good governance of a country helps it to sustainable growth and consistency in progress. The good governance should contribute towards the improvement in transparency, ethics, morality, and disclosure. The principles of good governance stand on honesty, trust, integrity, openness, and performance orientation. Our honorable Prime Minister Narendra bhai Modi had given the three E for good governance during his speech on Independence Day i.e. Effective Governance, Electronic Governance, and Ethical Governance. The fundamental concern of corporate governance mechanism is to ensure the protection of minority shareholders/owners of specific firms. Mechanism of a corporate governance specifies the relations among the shareholders, board of directors, and managers. The present paper is an attempt to evaluate the effectiveness of the board by calculating the corporate governance score. The mandatory and non-mandatory guidelines have been considered while assigning points to specific parameters of the corporate governance.

Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah Di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Collection Method ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This type of research is quantitative. The data collection method used is the documentation method and library study method. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence to ROA. Means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

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