The Performance Of Islamic Banking With Maqashid Index

Abstract

This study aims to measure the performance of Islamic banks based on the Maqashid Sharia Index. This research is a descriptive research. The study used four samples of Islamic banks, namely Bank Muamalat Indonesia, Bank Syariah Mandiri, Bank Rakyat Indonesia Syariah, and Bank Negara Indonesia Syariah. The research data used was the annual report in 2015-2017. The analytical method used in this research was the Maqasid Sharia Index with three indicators, namely Educating Individual, establishing Justice, Maslahah/Justice. The results of the study showed that Islamic banks had implemented the three purposes and objectives of sharia, except that the results of performance each year vary, no one is able to realize high performance in all ratios.

Pengukuran Kinerja Islami Badan Amil Zakat Nasional (BAZNAS) Provinsi Sumut Dengan Menggunakan Pendekatan Maslahah Performa (MaP)

“…Setiap harta yang diperoleh, seperti yang sudah menjadi rahasia umum, sesungguhnya mengandung hak-hak individu lain. Akibatnya harta yang telah diperoleh harus segera dibersihkan melalui pembayaran zakat (Ardila et al, 2019). Dua landasan kemaslahatan dalam orientasi kekayaan Baznas adalah bagaimana menghimpun dan menyalurkan dana zakat kepada delapan kelompok asnaf yang memenuhi syarat untuk menerima dukungan alokasi dari dana zakat.…”

The Application of Maqasid Shariah on Banking Industry

“…The implementation of Maqashid Syariah in banking involves the use of the Maqashid Syariah Index (MSI) as a measurement tool to ensure that banking practices are in line with the principles of Islamic law and provide greater benefits to society. The Maqashid Syariah Index is used to break down the concept of Islamic Maqashid into indicators that have elements that can be proxied by the performance of Islamic bank financial ratios (Ardila et al, 2019). MSI can be used to assess the impact of corporate governance, intellectual capital, and financial performance on sustainable financial practices in Indonesia's Islamic financial services industry, one of which is banking (Praptiningsih et al, 2022).…”

“…The Maqashid Sharia Index (MSI) method has three main objectives, including educating the people, upholding justice, and the public interest (Yusup & Nasution, 2020). The application of Maqashid Sharia in banking is important because it helps Islamic banks achieve social goals and benefits for their customers, not just being profit-oriented (Ardila et al, 2019;Yusup & Nasution, 2020;Elahi & Alam, 2022;Erba & Nofrianto, 2022).…”

“…and Elahi & Alam (2022) say that Maqashid Shariah provides a set of guiding principles for Islamic banking and finance, which helps ensure that these institutions operate in accordance with Islamic values and ethics. In addition, Maqashid Sharia emphasizes the importance of social objectives, such as promoting justice and maintaining the benefit of society, rather than being merely profit-oriented Ardila et al, 2019;Mergaliyev et al, 2019). This helps ensure that Islamic banks are not only focused on making money, but also serving the needs of their customers and communities.…”

“…This helps ensure that Islamic banks are not only focused on making money, but also serving the needs of their customers and communities. Ardila et al (2019) emphasized that the Maqashid Syariah Index is used to measure the performance of Islamic banks based on adherence to Maqashid Syariah principles. This can help ensure that Islamic banks are accountable for their actions and strive to achieve Maqashid Syariah objectives.…”