Published 2019-01-03
How to Cite
How to Cite
Abstract
This research aims to describe the effectiveness of supervisory functions in Islamic banking and finance in Indonesia. To this end, this work uses descriptive quantitative research applying Library Approach. As an intermediary institution based on sharia principles, sharia banks must perform two compliances, namely sharia principle and law compliance. The application of these compliances is not only required for good corporate governance and diverse products of sharia bank, but also for financial deeds made by a notary. Therefore, financial deeds in sharia banks must reflect the sharia compliance principle instead of only reflecting the law compliance. Special concern about sharia compliance has become authority scope from the Sharia Supervisory Board. Thus, Sharia Supervisory Board does not only ensure the application of sharia compliance but also every deed based on Islamic principles built by a notary. Failure to fulfill the sharia principles in a sharia bank financing deed can cause such deed to be null and void.
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