Comparison Of Good Corporate Governance(GCG) Implementation Practices In Islamic Commercial Banks In Indonesia

Abstract

Sharia Banking in Indonesia has a Sharia Supervisory Board that can monitor the operation of Sharia banks so that they are different from other banks. It is hoped that with this monitoring system the operation of corporate governance will be better. This study aims to explain the differences in the application of Good Corporate Governance (GCG) between Islamic banking in Indonesia. Sharia Bank is a bank whose application is different from conventional banks. Where one of the differences is the existence of a Sharia Supervisory Board which ensures bank activities are based on sharia. Then conducted a study of Islamic banks during 2014 to 2018. This research method uses descriptive analysis based on data that has been reported by each Islamic banking. The results of the survey showed that BCA Syariah and BSM received the highest rating among other sharia banks. This explanation shows that the implementation of corporate governance has been "very good" and has been in accordance with the stipulated provisions. BNIS, BRIS, Bukopin Syariah Bank, Mega Syariah Bank, Panin Syariah Bank, Victoria Syariah Bank, and Maybank Syariah, each ranked 2 (two). This means that the implementation of corporate governance goes "well". Interestingly, the Muamalat bank which has been the oldest BUS in Indonesia is ranked 3 (three). This means that the application of corporate governance is "good enough". Some notes on Muamalat's bank that must be corrected.

Corporate governance and risk management in Islamic and convectional financial institutions: explaining the role of institutional quality

“…The relationship between SSB and the financial performance of Islamic financial services sector is well established in the empirical literature (Saputra and Ihsan, 2021;Virk et al, 2022). Specially, Virk et al (2022) testing the concept of religious agency provided significant evidence that SSB of Islamic banks has significant positive impacts on their financial performance.…”

Good Corporate Governance with Religiosity Approach in Realizing Accountability at Sharia Financial Institution

“…What prayers, obligatory or not, facing where, alone or in the congregation (Aziz, 2016). The application of GCG in Islamic financial institutions can be realized by explaining the vision, mission goals, and schemes, to transparent financial products for the benefit of customers (such as the freedom of a musalli to have a mosque and an imam (Saputra & Ihsan, 2021). Responsibility in the theory of Salat or the theory of Hahslm is described by our obligation as human beings to pray (Aziz, 2016).…”

“…The transition of regulatory and supervisory responsibilities of sharia banking nstitutions from Bank Indonesia to the financial services authority in anticipated to uphold enduring progress in the years to come. Ninth, (Saputra & Ihsan, 2021) "Comparison of Good Corporate Governance Implementation Practices in Islamic Commercial Banks in Indonesia". This study posits that in the event that the execution of governance in Islamic banking is commendable, it possesses the capacity to engender notable progress and rivalry in contrast to conventional banking in Indonesia, like to the Islamic banking sector in Malaysia.…”