The Characteristics of the Sharia Supervisory Board Towards Financial Soundness in Indonesia Islamic Bank

DOI

10.2991/aebmr.k.220702.007How to use a DOI?

Keywords

financial soundness; Islamic banks; shariah supervisory board characteristics

Abstract

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.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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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  -