Board expertise and Islamic bank performance in a two-tier system
DOI:
https://doi.org/10.21580/jiafr.2025.7.2.28594Keywords:
board expertise, Islamic bank performance, two-tier systemAbstract
Purpose - The purpose of this study is to analyze the influence of the expertise of the directors, board of commissioners, and sharia supervisory board on the performance of Islamic banking.
Method - This study uses three areas of expertise, namely accounting/finance, business, and sharia expertise. The sample of this study is Islamic banking from 2014 to 2024, which meets the research criteria.
Result - This study found that the expertise of the directors, board of commissioners, and sharia supervisory board improves the performance of Islamic banking.
Implication - This study provides implications for companies and regulators to encourage and develop regulations that require the composition of the directors, board of commissioners, and sharia supervisory board with accounting/finance, business, and sharia expertise.
Originality - As far as the author knows, research on board expertise in Islamic banking in countries that adopt a two-tier system has never been conducted.
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