Regulatory Challenges For The Development Of Islamic Banking: A Literature Review Tanza Dona Pertiwi- Imron Mawardi- Nur Zakiyah Hafizhah- Rohmatul Farohah Kholison
Faculty of Economic and Business, Universitas Airlangga
tanza.dona.pertiwi-2023[at]feb.unair.ac.id
Abstract
Sharia banking regulations are an important factor in the development of Sharia banking. Appropriate regulations can encourage the growth and development of sharia banking, but inappropriate regulations can hinder the growth and development of sharia banking. This research aims to examine regulatory challenges for the development of sharia banking. This research uses a literature study method by analyzing books, journals, and related scientific articles. The results of the research show that the regulatory challenges for the development of Sharia banking, namely the calculation of profit and loss sharing (PLS) still refer to the interest system, the need for regulatory updates that are more inclusive and responsive to the development of the sharia banking industry, regulations are partial, the practice of implementing contracts is overshadowed by contracts conventional, Minimum capital and liquidity regulations still refer to general regulations, Regulatory indicators in assessing efficiency still refer to conventional models, Weaknesses in regulations requiring sharia financial institutions in governance and supervision, Weaknesses in regulatory control in implementing good corporate governance, Weaknesses of sharia justice in dealing with sharia violations. Sharia banking regulations need to continue to be adjusted and reorganized so that Sharia banking can develop and develop healthily with conventional banking and be resilient in facing crises. The implications of these findings can help governments, regulators, and Islamic banking industry stakeholders to formulate more effective policies and support sustainable growth in this sector.
