GOOD CORPORATE GOVERNANCE (GCG) PRINCIPLE IN SHARIA BANKING: AN ISLAMIC LAW PERSPECTIVE

Authors

  • Suryani Suryani Hasanuddin University image/svg+xml
  • Yudi Ahmad Faisal Yudi Ahmad Faisal
  • Muhammad Anwar Fathoni UPN Veteran Jakarta
  • Lukman Santoso IAIN Ponorogo

DOI:

https://doi.org/10.26532/ijlr.v5i2.14973

Keywords:

Good Corporate Governance (GCG), Sharia bank, Islamic Law

Abstract

The implementation of Islamic economy in Indonesia is due to the fact that Islam has a comprehensive and universal teaching in all human life aspects, including economy. One encouraging Islamic banking development in Indonesia is indicated by the operation of banks accommodating the Sharia principles. The rapid development of Sharia banking requires an immediate implementation of Good Corporate Governance (GCG) System to provide a maximum protection for the stakeholders, especially customers. The implementation of GCG is expected to help Sharia banking minimize the poor financing quality, increase the bank assessment accuracy, infrastructure, and business decision making quality as well as become the early detection to high risk business areas, products, and services. The implementation of GCG system is greatly important since Sharia banking is the intermediary institution requiring the public or stakeholders’ trust.

References

Abdurrahman Wahid, 1999, Tuhan Tidak Perlu Dibela (God needs no Defense), LkiS, Yogyakarta;

Joko Widodo, 2002, Good Governance, Insan Cendikia, Surabaya;

Muhammad Abu Zahrah, 1958, Ushul al-Fiqh, Dar al-Fikr al-‘Arabi, Beirut;

Rifyal Ka’bah, 2004, Penegakan Syariat Islam di Indonesia The Enforcement of Islamic Sharia in Indonesia, Khairul Bayan, Jakarta;

Sudarmayanti, 2004, Good Governance II, Mandar Maju, Bandung;

Sugiyono, 2017. Metode Penelitian Kualitatif, Kuantitatif dan Research Development, Alfabeta, Jakarta, 2017;

Journals:

Ibrahim Abiodun Oladapo et al., Perception of Stakeholders on Governance Dimensions of the Islamic Banking Sector, International Journal of Emerging Markets. Vol. 14, No. 4, October 2019;

Khuram Shahzad Bukhari, Hayat M. Awan, Faareha Ahmed, An evaluation of corporate governance practices of Islamic banks versus Islamic bank windows of conventional banks: A Case of Pakistan, Management Research Review, Vol. 36, No. 4, 2013;

Masudul Alam Choudhury and Mohammad Nurul Alam, Corporate Governance in Islamic Perspective, International Journal of Islamic and Middle Eastern Finance and Management, Vol. 6, No. 3, August 2013;

Mongi Lassoued, Corporate Governance and Financial Stability in Islamic Banking, Managerial Finance, Vol. 44, No. 5, 2018;

Muhammad Iman Sastra Mihajat, Shari’ah Governance Framework in Islamic Banking and Financial Institutions in Indonesia: A Proposed Structure, in Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice, Emerald Publishing Limited, 2019;

Murniati Mukhlisin and Leny Nofianti, The Role of Good Corporate Governance and Accounting in Islamic Financial Institutions,†in Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice, Emerald Publishing Limited, 2019;

Sulaiman Abdullah Saif Alnasser, Joriah Muhammed, Introduction to Corporate Governance from Islamic Perspective, Humanomics, Vol. 28, No. 3, 2012;

Yaser Ahmed Fallatah, Abul Hassan Farooqi, and Salah al Shalhoob, A Perspective of the Shari’ah Compliant Corporate Governance of Financial Institutions in Saudi Arabia and Agency Structures, in Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice, Emerald Publishing Limited, 2019;

Regulation:

Undang-Undang No. 21 Tahun 2008, tentang Perbankan Syariah, pasal 34, 35, 38 dan 39 (Law No. 21 Year 2008 on Sharia Banking in Article 34, 35, 38, and 39)

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Published

2021-09-18

Issue

Vol. 5 No. 2 (2021): International Journal of Law Reconstruction

Section

Articles

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