Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Mediate Effect of Sharia Compliance on the Performance of Islamic Banking in Indonesia

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Mediate Effect of Sharia Compliance on the Performance of Islamic Banking in Indonesia

CSR; GCG; Islamic banking Performance; Sharia Compliance; SSB

This study aimed to prove whether Sharia Compliance (SC) mediates the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR) on financial performance and maqashid sharia performance in Islamic Commercial Banks (ICBs) in Indonesia. A regression analytical method was employed based on Structural Equation Modeling with panel data in the annual report published by ICBs in Indonesia for 2014-2019. The results proved that SC positively mediated GCG and CSR on maqashid sharia performance while negatively mediated financial performance. At
the same time, it did not mediate SSB on both financial performance and maqashid sharia
performance. Based on these findings, policymakers should launch regulations on the disclosure of the dimensions GCG, SSB, CSR, and SC in the annual reports of ICBs. Furthermore, in practical implementation, ICBs should improve GCG, CSR, and SC as the performance of Islamic banking-supporting dimensions and, evaluate SSB as the nonsupporting one

Usdeldi Usdeldi, M. Ridlwan Nasir, Muhamad Ahsan

DOI: 10.26905/jkdp.v26i1.6158

Universitas Merdeka Malang

January 2022

Sri Wahyuni

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

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Jurnal Keuangan dan Perbankan Universitas Merdeka Malang