This study seeks to examine the implementation of Good Corporate Governance (GCG) principles as a means to enhance the effectiveness of Islamic banking operations. GCG encompasses a framework of regulations, practices, and procedures aimed at guiding and overseeing organizational management. Within Islamic banking, GCG adoption serves not only to ensure regulatory adherence but also underscores the significance of ethical standards and adherence to sharia principles. The study employed a qualitative analysis utilizing a literature review method to investigate prior research conducted at Bank Syariah Indonesia. Data collection encompassed various sources such as books, journals, internet resources, and pertinent documents. Findings indicated that integrating Good Corporate Governance (GCG) principles like transparency, accountability, responsibility, independence, and fairness has yielded favorable outcomes on the operational and financial efficacy of Islamic banks. The research concluded that Islamic banks adhering steadfastly to GCG principles experience heightened stakeholder trust, diminished operational risks, and enhanced efficiency and effectiveness in conducting banking operations. Moreover, top management's dedication to embedding GCG principles across all facets of bank operations emerges as pivotal in attaining peak performance. The findings underscore the importance of reinforcing the application of GCG principles within Bank Syariah Indonesia to foster enduring performance. It is imperative to ensure that all operational facets align with sharia principles for sustained success. This study contributes significantly to GCG literature within the Islamic banking domain, furnishing actionable insights for industry decision-makers.
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