A systematic literature review on the role of sharia governance in improving financial performance in sharia banking
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 15 May 2023
Issue publication date: 29 March 2024
Abstract
Purpose
The purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal sharia compliance, and whether it can affect the performance of Islamic banking.
Design/methodology/approach
Literature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review.
Findings
The variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking.
Practical implications
The development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia.
Originality/value
Further research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.
Keywords
Citation
Minaryanti, A.A. and Mihajat, M.I.S. (2024), "A systematic literature review on the role of sharia governance in improving financial performance in sharia banking", Journal of Islamic Accounting and Business Research, Vol. 15 No. 4, pp. 553-568. https://doi.org/10.1108/JIABR-08-2022-0192
Publisher
:Emerald Publishing Limited
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