The Good Corporate Governance and Marked Value-Added Techniques Improving Financial Performance of Foreign Exchange Islamic Commercial Banks
1. Muhammad Syahid, 2. Wasiaturrahma, 3. Wisnu Wibowo.

1. Doctoral Student in Economics, Faculty of Economics and Bussines, Airlangga University.

2,3. Lecturers in Economics Departement, Faculty of Economics and Bussines, Airlangga University.

Abstract

Foreign exchange Islamic commercial Bank is a financial intermediaries that can carry out transactions abroad or related to foreign currency. As a financial intermediary of funds not only domestically but also in other countries, Banks must demonstrate good financial performance to increase public trust, customer satisfaction, and others. This paper aims to determine the financial performance assessment of the Foreign Exchange Sharia Bank in the period 2018-2022 using the GCG and MVA techniques to guard their performance. Furthermore, these approaches are seen from an Islamic economic perspective. The method in this research is quantitative descriptive analysis, where the data used secondary data, namely annual reports obtained from each Islamic Commercial Banks website that own foreign exchange transactions such as Panin Dubai Syariah Bank, Muamalat Bank, Syariah Indonesia Bank, and Mega Syariah Bank using library data collection and documentation methods, by presenting an overview of good corporate governance (GCG) and market value added calculations. The results revealed that the financial performance overall in terms of GCG in foreign exchange Islamic Banks in the period 2018-2022 received a good score. and the analysis by MVA calculation showed a positive value (MVA>0) meaning it has good performance. One of the similarities of GCG is corporate responsibility, and it is related to Islamic Economics which stated that companies must be accountable for their performance in a transparent, fair, well-management and others. Besides that, the MVA aims to make investment decisions if it is linked to Islamic economic procedures, as a result, the investment is permitted as long as it is carried out according to Islamic Banking Principles

Keywords: GCG, MVA, Financial Performance, Foreign Exchange Islamic Commercial Banks.

Topic: Islamic finance and banking (colloquium)