The First International Conference On Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Bandar Lampung, Indonesia

Research Article

How to Increase Islamic Banking Profit Growth in Indonesia?

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  • @INPROCEEDINGS{10.4108/eai.10-9-2019.2289361,
        author={Delli  Maria and Faurani  Singagerda and Maharani  Maharani},
        title={How to Increase Islamic Banking Profit Growth in Indonesia?},
        proceedings={The First International Conference On Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Bandar Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICIDS},
        year={2019},
        month={11},
        keywords={maqoshid sharia profit growt islamic bank sharia supervisory board},
        doi={10.4108/eai.10-9-2019.2289361}
    }
    
  • Delli Maria
    Faurani Singagerda
    Maharani Maharani
    Year: 2019
    How to Increase Islamic Banking Profit Growth in Indonesia?
    ICIDS
    EAI
    DOI: 10.4108/eai.10-9-2019.2289361
Delli Maria1,*, Faurani Singagerda2, Maharani Maharani1
  • 1: Informatics and Business Institute Darmajaya, Dept. of Accounting, Indonesia
  • 2: Informatics and Business Institute Darmajaya, Dept. of Management, Indonesia
*Contact email: delli.maria@darmajaya.ac.id

Abstract

This research aims to prove empirically whether applying maqashid sharia and the maximal role of the sariah supervisory board on sharia operations can lead to positive profit growth in Islamic banks in Indonesia. The performance of maqashid sharia is measured using the Maqashid Shariah Index (MSI) while the sharia supervisory board is measured using the number of sharia supervisory boards. This study uses a purposive sampling method, in order to obtain eleven Islamic banks registered. Hypothesis testing using multiple linear regression. The results of this research found that applying of maqashid sharia and the maximal role of the sharia supervisory board could lead to positive profit growth in Islamic banking in Indonesia.