This study aims to examine the effect of supervision carried out by independent director and Sharia Supervisory Board (SSB) to the transparency of risk information in Islamic banks. Data collection is carried out by analyzing the content of the annual reports of 30 Islamic banks in 2014-2017 using the transparency of risk information Index (TRII) of Islamic Banks. The result shows that the level of transparency of risk information in Islamic banks is still relatively low (59%). Regression shows that the characteristics of SSB are positively related to the transparency of risk information on Islamic banks, while independent directors are not. This research shows that the oversight mechanism carried out by SSB is more effective in encouraging transparency of risk information of Islamic banks than independent directors. This research implies the importance of strengthening the role and position of the SSB in encouraging transparency of risk information in Islamic banks.

This study assesses the level of transparency of risk information in Islamic banks and whether the mechanism of Islamic corporate governance affects the level of transparency of risk information in Islamic banks. Data is collected from annual report and websites of Islamic banks operating in countries included in the list of countries have the most developed Islamic finance market in the world for the period 2014-2017 by performing a content analysis and regression test. This study found that the level of transparency of risk information in Islamic banks is still quite low, most Islamic banks disclose less than 60% of the risk information transparency index items in Islamic banks. In addition, there are no Islamic banks that disclose all information in the index and the highest risk information transparency score is 80.65. The regression results show that Islamic Corporate Governance has a positive association with the level of transparency of risk information in Islamic banks. This finding is very valuable for enhanching and strenthening the role and statusof SSB in governance of Islamic banks and designing policies and relevant standard to improve transparency in Islamic banks.

Purpose: This study aims to determine the level of transparency of Islamic banks in Indonesia and Malaysia by looking at the level of transparency of information related to the Sharia Supervisory Board (SSB) in Islamic banks in both countries and the influence of various characteristics of SSB on the disclosure.Method: The study covers the period 2012-2019 and the research data was obtained by conducting content analysis on the annual reports of Islamic banks.Findings: The results of the regression test show that the size and expertise of SSB have no effect on the disclosure of SSB by Islamic banks in Indonesia and Malaysia. SSB cross-membership has a positive effect on SSB-related disclosures in both countries. This study shows that the experience and knowledge gained by SSB members from their positions as SSB at various other Islamic financial institutions has a positive influence on the ability of SSB to increase the transparency of information about SSBs in Islamic banks.Novelty: This study contributes to providing empirical evidence and literature on the importance of the role of SSB in determining the level of transparency carried out by Islamic banks in the majority and most populous Islamic country in the world.