Year: 2024
Type: article
Abstract: Sharia banks operate in several Muslim-majority countries, offering an alternative financial system aligned with Islamic principles. This study aims to develop a web-based information system for measuring the Maqasid Sharia Index (SMI) in real-time to assess the Islamization level of Sharia banks. Financial data from Indonesian sharia banks before and after their merger in 2021 (January 2013–February 2022) were analyzed. The Markov Switching Autoregressive (MSAR) method, with a margin of error of 0.107, was used to predict SMI values several years into the future. The results indicate that while the SMI value is predicted to decrease by 2025, the financial value of the banks is expected to increase. These findings provide valuable insights for improving the operational effectiveness of Sharia-compliant banking systems.
Source: Data & Metadata
DOI: 10.56294/dm2024.681
Institutions: Diponegoro University, State University of Malang
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4407589467