Analysis of the Influence of Sharia Management on the Financial Performance of Sharia Banking in Indonesia: Analisis Pengaruh Manajemen Syariah terhadap Kinerja Keuangan Perbankan Syariah di Indonesia

Abstract

Sharia banking in Indonesia continues to grow as public awareness of Islamic financial principles increases. However, improving financial performance remains a major challenge in achieving competitive advantage. This study aims to analyze the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Financial Technology (fintech) on the financial performance of Islamic banks. A quantitative approach with multiple linear regression was employed using secondary data from 12 Islamic banks between 2019–2024. The results show that GCG and SSB have a significant negative effect, while fintech has a significant positive effect on Return on Assets (ROA). Simultaneously, all three variables significantly influence financial performance. These findings indicate that successful financial performance requires adaptive governance and technological integration. The study contributes to Islamic financial management by offering empirical evidence on the importance of strategic synergy between governance and innovation