The influence of sharia compliance and Islamic corporate governance on the performance of sharia bank funds in Indonesia, 2018–2022

Abstract

This study aims to determine the influence of Sharia Compliance and Islamic Corporate Governance on the Financial Performance of Islamic Banks in Indonesia. The population of this study is 14 Sharia Commercial Banks in Indonesia, namely Bank Muamalat Indonesia, Bank Mandiri Syariah, Bank BRI Syariah, Bank BNI Syariah, Bank BCA Syariah, Bank Syariah Bukopin, Bank Mega Syariah, Bank Victoria Syariah, Bank Panin Dubai Syariah, Bank Maybank Syariah, Bank Jabar Banten Syariah, Bank Aceh Syariah, Bank BTPN Syariah, and Bank NTB Syariah. The sampling technique in this study is using purposive sampling. The number of samples taken in this study is 5 Sharia Commercial Banks, including Bank BCA Syariah, Bank Mega Syariah, Bank Bukopin Syariah, Bank Aceh Syariah, and Bank Jabar Banten Syariah. Data testing using multiple linear regression analysis. The results of the study show that Sharia Compliance which includes the Islamic Interbank Rate (ISIR) ratio, Profit Sharing Ratio (PSR), Islamic Interest Rate (IIR), and Zakat Profit Ratio (ZPR) has a significant influence on the performance of Sharia Commercial Banks. This study also shows that Islamic Corporate Governance does not have a significant influence on the Return On Asset (ROA) and Return On Equity (ROE) financial performance of Sharia Commercial Banks. In addition, Sharia Compliance has a joint or simultaneous influence on the financial performance of Islamic banks, which is measured through Return on Asset (ROA) and Return on Equity (ROE).