The Characteristics of the Sharia Supervisory Board Towards Financial Soundness in Indonesia Islamic Bank
- 10.2991/aebmr.k.220702.007How to use a DOI?
- financial soundness; Islamic banks; shariah supervisory board characteristics
This study purposes to examine the effect of Shari’ah Supervisory Board (SSB) characteristics on the Financial Soundness (FS) of Islamic banks in Indonesia. The sample was 13 Islamic banks from 2015-to 2019. This research used the RGEC method to measure financial soundness in Islamic banks. RGEC method (Risk Profile, Good Corporate Governance, Earning and Capital) in this study represented by six aspects they are: Non-Performing Financing (NPF), Financing to Debt Ratio (FDR), Good Corporate Governance (GCG), Return on Assets (ROA), Operational Expense toward Operational Income (BOPO), and Cash Adequacy Ratio (CAR). According to the result, the RGEC method showed the diverse financial soundness of the Indonesian Islamic bank in every aspect. There are several results found from the RGEC method: (1) the board size affects the FS of Islamic banks from GCG and CAR aspects; (2) multi positions of SBB will affect the FS of Islamic banks from NPF, ROA, and BOPO aspects; (3) the meeting frequency only affects the FS of Indonesian Islamic banks from BOPO aspects.
- © 2022 The Authors. Published by Atlantis Press International B.V.
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Cite this article
TY - CONF AU - Vanica Serly AU - Suci Oktamirza PY - 2022 DA - 2022/07/21 TI - The Characteristics of the Sharia Supervisory Board Towards Financial Soundness in Indonesia Islamic Bank BT - Proceedings of the Eighth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-8 2021) PB - Atlantis Press SP - 40 EP - 46 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220702.007 DO - 10.2991/aebmr.k.220702.007 ID - Serly2022 ER -