Abstrak


Shariah Supervisory Board Cross-Membership and Islamic Bank's Performances


Oleh :
Maritsa Hadana - F0319080 - Fak. Ekonomi dan Bisnis

Islamic banks significantly differ from conventional banks in their adherence to Islamic principles. Therefore, sharia compliance is vital to the sustainability of Islamic banks. In this case, Islamic banks have a Sharia Supervisory Board (SSB) as a special authority overseeing Sharia compliance. Previous studies have explored SSB's characteristics on Islamic banks' performance. However, the influences of cross-member SSB on the performance of Islamic banks by proxy for non-performing financing (NPF) and return on assets (ROA) have yet to be explored. This research examines and analyzes the influence of cross-membership SSB on Islamic bank performance by two proxies, NPF and ROA. The sample in this study consisted of 39 Islamic banks in 9 countries, observed from 2016-2020. The random effect model was used in this research. Based on the test results, cross-membership SSB has a negatively significant effect on NPF and a positively significant effect on ROA