Does Maqashid Sharia index boost the stability of Indonesian Islamic banks?

Purpose This study aims to assess the impact of implementing Maqashid Sharia on the stability of Islamic banks in Indonesia. Design/methodology/approach The quantitative research design was employed using semi-annual panel data from nine Islamic banks in Indonesia from 2015 to 2024. The study used the feasible generalized least squares method for the analysis. Findings The result of this study shows that the educational grants and personal income indexes have a positive influence on the stability of Islamic banks in Indonesia. However, functional distribution reduces the stability of Islamic banks. Research limitations/implications The first limitation is the limited sample size that only investigates the Islamic banks in Indonesia. The second is the methodology; dynamic panel data is also important to generate robust study results, and the measurement model needs to be reevaluated. Practical implications Islamic banks could improve the position in terms of maintaining stability using Maqashid Sharia measurement. Zakat paid promotes the stability of the Islamic banks. Social implications Maqashid Sharia index performance can be a specific measurement, especially for Islamic banks in Indonesia. This measurement can change the public’s view of Islamic banks that are more profit-oriented. Originality/value This is the first study to examine the Maqashid Sharia index on the stability of Islamic banks in Indonesia. Second, this paper also complements the prior study relating to the Maqashid Sharia index in a cross-country analysis.

Institutions

Publication Details

Journal
Journal of Islamic accounting and business research
Published
2025-11-13
DOI
https://doi.org/10.1108/jiabr-01-2025-0024
Primary Topic
Islamic Finance and Banking Studies
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Does Maqashid Sharia index boost the stability of Indonesian Islamic banks?

Journal of Islamic accounting and business research
Islamic Finance and Banking Studies
article

Does Maqashid Sharia index boost the stability of Indonesian Islamic banks?

article en

Abstract

Purpose This study aims to assess the impact of implementing Maqashid Sharia on the stability of Islamic banks in Indonesia. Design/methodology/approach The quantitative research design was employed using semi-annual panel data from nine Islamic banks in Indonesia from 2015 to 2024. The study used the feasible generalized least squares method for the analysis. Findings The result of this study shows that the educational grants and personal income indexes have a positive influence on the stability of Islamic banks in Indonesia. However, functional distribution reduces the stability of Islamic banks. Research limitations/implications The first limitation is the limited sample size that only investigates the Islamic banks in Indonesia. The second is the methodology; dynamic panel data is also important to generate robust study results, and the measurement model needs to be reevaluated. Practical implications Islamic banks could improve the position in terms of maintaining stability using Maqashid Sharia measurement. Zakat paid promotes the stability of the Islamic banks. Social implications Maqashid Sharia index performance can be a specific measurement, especially for Islamic banks in Indonesia. This measurement can change the public’s view of Islamic banks that are more profit-oriented. Originality/value This is the first study to examine the Maqashid Sharia index on the stability of Islamic banks in Indonesia. Second, this paper also complements the prior study relating to the Maqashid Sharia index in a cross-country analysis.

Journal of Islamic accounting and business research
Sunan Kalijaga State Islamic University Yogyakarta (ID)
No poverty
Openalex Percentile: Top 32%
Islamic Finance and Banking Studies
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Does Maqashid Sharia index boost the stability of Indonesian Islamic banks? · Journal of Islamic accounting and business research (2025) | TGRS Research Map | TGRS