Reconstruction of Performance Measurement Models for Islamic Bank

Abstract

Criticism of conventional financial performance measurement for Islamic banks states that the management behavior of Islamic banks that apply CAMELS and RGEC as a measure of performance, will be co-opted by values that focus financial goals as top priority. Islamic banks will be reduced to material and individual oriented banks, which will lead to dysfunctional behavior of sharia bank management as an authority in carrying out bank operations. One of the dysfunctional behaviors such as ignoring the provision of productive funding to small customers. Using development research methods, this study aims to design as well as implement a performance measurement model as well as a framework of performance measures for Islamic banks based on Islamic values to achieve maqasid al-Syari ah. The steps of systematic and structured development methods in the form of collaboration between Barg and Gall (1983) with Sugiyono (2013) were carried out to produce a performance measurement model that is in accordance with the identity of Islamic banks. In the end, the measurement of the performance of Islamic banks which was formulated systematically can measure the entire role of Islamic banks as business, social and