Health Level and Disclosure of Islamic Values of Indonesian Islamic Banking and Malaysian Islamic Banking: A Literature Review

Abstract

Sharia banks are considered financial institutions that are in accordance with Islamic principles, attracting the interest of the public, especially Muslims, because they do not involve usury. The performance of Islamic banks, both financial and non-financial, is assessed using the RGEC method which includes risk profile, good corporate governance, profitability and capital. In addition, disclosure of Islamic values ​​in annual reports is an important indicator to ensure sharia compliance. This study aims to compare the level of soundness and disclosure of Islamic values ​​in Islamic banks in Indonesia and Malaysia, which are the centers of growth of the Islamic banking industry in Southeast Asia. This research uses literature study and secondary data to measure performance and disclosure. Based on previous research, it was found that the performance of Islamic banks in Indonesia and Malaysia has its own advantages in different aspects, both in terms of financial ratios and disclosure of ethical and Islamic values.