Measuring shariah compliance model : evidence from Islamic banks in Indonesi

الملخص EN

Measuring the sharīʿah-compliance achievement of Islamic banks is important because the bank products should follow sharīʿah principles.

Although some studies have formulated measurement models, most of the models are still conceptual or empirical research but with the partial approach employing only part of sharīʿah-compliance variables such as a contract or maqāṣid al-sharīʿah alone.

Therefore, this study attempts to bridge the gap by building a comprehensive model and implementing it to the empirical research in ten Indonesian Islamic Banks by utilizing two sharīʿah compliance variables: the contract and maqāṣid al- sharīʿah simultaneously.

In this study, the modeling process used a theory-based method.

Afterward, the paper expresses the measurement results in a sharīʿah compliance index.

The sharīʿah-compliance index represents a comparison between standard and measurement scores.

The study has found that the Bank standard operating procedure (SOP) of the product and its implementation did not fully achieve the model standard scores with the rare frequency of sharīʿah non-compliant events in its practice.