Research Article
Risk, Governance, Earnings, Capital (Rgec) Method And Maqashid Sharia Index (Msi) : The Soundness Level Of Islamic Banks In Indonesia
@INPROCEEDINGS{10.4108/eai.26-3-2019.2290770, author={Aulia Octaviana D and Fitri Indriawati}, title={Risk, Governance, Earnings, Capital (Rgec) Method And Maqashid Sharia Index (Msi) : The Soundness Level Of Islamic Banks In Indonesia}, proceedings={Proceedings of the First Annual Conference of Economics, Business, and Social Science, ACEBISS 2019, 26 - 30 March, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ACEBISS}, year={2020}, month={2}, keywords={rgec maqashid sharia index cpi soundness level}, doi={10.4108/eai.26-3-2019.2290770} }- Aulia Octaviana D
Fitri Indriawati
Year: 2020
Risk, Governance, Earnings, Capital (Rgec) Method And Maqashid Sharia Index (Msi) : The Soundness Level Of Islamic Banks In Indonesia
ACEBISS
EAI
DOI: 10.4108/eai.26-3-2019.2290770
Abstract
This research aims to know the soundness level the Islamic Banks in Indonesia by using the Risk, Governance, Earnings, Capital (RGEC) and Maqashid Sharia Index (MSI) approaches in 2013-2017 and to know the importance of using MSI in completing bank performance assessment. The research method used is descriptive research with a quantitative approach. This research using 6 samples of public Islamic Banks (BUS) namely BMI, BRIS, BSM, BNIS, BMS and BCAS. The RGEC aspect uses Comparative Performance Index (CPI) measurements and the Maqashid Sharia aspect uses MSI measurements and then compared both using Cartesian diagram. The result proves that the soundness of the bank as measured by the RGEC method shows a different ranking sequence with the Maqashid Sharia Index method. The order of bank soundness ratings based on RGEC is BCAS, BMS, BNIS, BRIS, BSM and BMI while based on Maqashid Sharia Index (MSI) the ranks first to last is BCAS, BMI, BRIS, BNIS, BSM and BMS. Both methods can be used simultaneously to assess the soundness level in Islamic banking because both methods can complement each other in order to obtain a more comprehensive assessment.
