Sustainability of Indonesian Islamic Banking in terms of Corporate Ethical Identity and Corporate Governance

Abstract

This study empirically aims to analyse the strengthening of corporate identity and governance performance on the sustainability of Islamic banking in Indonesia, the influence of corporate identity performance on Islamic banking governance in Indonesia, and the influence of the performance of corporate identity and governance on the sustainability of Islamic banking in Indonesia.Types of quantitative research with an ex-post facto research design.The research population of all Islamic banks in Indonesia included BMI, BSI, BMSI, and BSMI samples.The data were analysed using simple additive weighting techniques by modelling using PLS-SEM.The study's conclusions show that strengthening corporate identity performance and governance toward the sustainability of Islamic banking in Indonesia is carried out through regulations, policies, and Sharia compliance. Corporate identity performance positively and significantly affects Islamic banking governance in Indonesia. A company's management has no effect on the sustainability of Islamic banking in Indonesia. Islamic banks in Indonesia need to re-reflect on neglected social activities because they prioritise commercial activities too much, thus ignoring social activities, which are also at the core of bank activities as intermediary institutions and financial services.