Journal of Islamic Economics and Philanthropy
Vol. 5 No. 4 (2023): May

Do we need a Sharia Supervisory Board in every Islamic bank?

Dian Septi Purnamasari (Universitas Gadjah Mada)
Asad Arsya Brilliant Fani (Universitas Indonesia)
Fajrin Intan Safitri (Universitas Brawijaya)



Article Info

Publish Date
16 Sep 2026

Abstract

Sharia compliance is crucial for Islamic Financial Institutions, so SSB an important element is the existence. The SSB is tasked with providing advice and suggestions to the directors as well as supervising and making decisions, policies related to bank activities so that they comply with sharia principles. The amount of remuneration in several banks is a problem in this research, so is it really necessary to have SSB in every bank, will the DSN not be enough? Remuneration can be allocated as an additional financing fund for debtors. This paper examines the relationship between SSB effectiveness, their remuneration, asset efficiency. Using a quantitative descriptive method, the Common Effect Model CEM as a model and form of dummy variable cross section data. The results that can be drawn from this study are the SSB remuneration, the number of members of the SSB, the total number of meetings held and the size of the assets have a significant effect on financing. Even though the percentage of remuneration in several banks is not reasonable, the role of SSB in each bank is still very much needed according to their roles and obligations.

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Journal Info

Abbrev

jiep

Publisher

Subject

Description

The Journal of Islamic Economics and Philanthropy (JIEP) is published quarterly in August, November, February, and May. The journal accepts only original empirical research, theoretical contributions, and systematic literature reviews. JIEP focuses on the intersection of Islamic economics and ...