Shariah Governance and Maqasid al-Shariah in Islamic Banking: A Systematic Literature Review
DOI:
https://doi.org/10.55606/jebaku.v6i2.7680Keywords:
Islamic Banking, Maqasid al-Shariah, Shariah Governance, Sustainability, Systematic Literature ReviewAbstract
Islamic banking is expected not only to comply with formal Shariah requirements but also to realize the higher objectives of Islamic law through accountable, transparent, and socially responsive governance. This study systematically reviews contemporary literature on the relationship between Shariah governance and maqasid al-Shariah in Islamic banking. A structured search and screening process was applied to peer-reviewed studies published between 2020 and 2025. Twenty eligible publications were classified according to research setting, method, governance mechanism, maqasid dimension, and reported outcome. The synthesis identifies five dominant themes: the quality and independence of Shariah supervisory boards, the institutionalization of Shariah review and audit, the operationalization of maqasid-based performance, the linkage between governance and risk management, and the expansion of governance toward sustainability and social value. The findings indicate that strong Shariah governance generally improves compliance quality, stakeholder confidence, financial discipline, and social performance, although evidence remains inconsistent regarding board size, national Shariah boards, environmental outcomes, and standardized measurement. The study proposes an integrated maqasid-oriented governance framework connecting oversight structures, decision processes, disclosure, risk controls, and measurable stakeholder outcomes. The review implies that regulators and Islamic banks should move from procedural compliance toward governance that demonstrates substantive value creation, justice, inclusion, and sustainability.
Downloads
References
Abdulrahman, Z., Ebrahimi, T., & Al-Najjar, B. (2023). Shariah-related disclosure: A literature review and directions for future research. International Journal of Disclosure and Governance, 21(4), 642–665. https://doi.org/10.1057/s41310-023-00221-4
Abdur-Rauf, I. A., Ali, E. M. T. E., Babatunde, M. A., & Balogun, A. D. (2026). Crowdfunding, blockchain, and smart contracts in Islamic finance: Evaluating compliance with Maqasid al-Shariah. Elicit Journal of Economics and Management Studies, 2(1), 61–83. https://doi.org/10.65820/ejems-4vol2-issue1-2026
Ahn, H. (2023). The association between ESG management and corporate risk-taking, and firm value. Korean Accounting Information Association, 41(4), 127–161. https://doi.org/10.29189/kaiaair.41.4.6
Aidi, N. K., Ramlie, H. A., & Adul, S. (2025). Good governance practices at Universiti Malaysia Sabah in the aspect of integrity from the perspective of Maqasid Shariah: A literature review. International Journal of Law, Government and Communication, 10(40), 671–680. https://doi.org/10.35631/ijlgc.1040046
Albanese, M. (2023). Reviewing literature through multidimensional representations. International Journal of Accounting Information Systems, 49, Article 100622. https://doi.org/10.1016/j.accinf.2023.100622
Al-Deek, M. Y. (2025). Liquidity risk in Islamic banking: Structural challenges and Shariah-compliant mitigation strategies. Suhuf, 37(2), 250–262. https://doi.org/10.23917/suhuf.v37i2.13223
Amirul, S. R., & Shaari, S. C. (2023). Bridging Maqasid Al-Shariah, Maslow's hierarchy of needs theory to flexible working arrangements (FWAs), quality of life. In Springer Proceedings in Business and Economics (pp. 55–65). Springer Nature Singapore. https://doi.org/10.1007/978-981-99-5118-5_4
Arshad, M., & Saleem, K. (2025). Impact of Shariah governance framework, Shariah supervisory board, and Shariah advisory committee on Islamic financial institutions' performance in Pakistan. Contemporary Issues in Social Sciences and Management Practices, 4(1), 176–191. https://doi.org/10.61503/cissmp.v4i1.294
Bayram, K., Shahwan, S. B., & Ergun, H. (2023). Managing Shariah non-compliance risk: Construction of a low-risk Shariah-compliant portfolio using the Black-Litterman portfolio optimization model. Al Qasimia University Journal of Islamic Economics, 3(1), 49–80. https://doi.org/10.52747/aqujie.3.1.224
Farag, M. S. A. El, & Rashed, T. (2023). The impact of Maqasid Al Shariah (objectives of Islamic Shariah) to obtain legal protection of humans: A comparative and analytical study of the Qatari laws. Journal of Law and Sustainable Development, 11(9). https://doi.org/10.55908/sdgs.v11i9.983
Furlong, D. E., & Lester, J. N. (2022). Toward a practice of qualitative methodological literature reviewing. Qualitative Inquiry, 29(6), 669–677. https://doi.org/10.1177/10778004221131028
Gusty, R., & Darniyus, A.-A. (2025). Applying Kotler's 5A model to TikTok live: A systematic literature review. Priviet Social Sciences Journal, 5(6). https://doi.org/10.55942/pssj.v5i6.398
Hai, A., Kassim, S., & Mohtesham, M. M. J. (2022). An innovative Sukuk-Waqf for Islamic microfinance institutions: Integrating Maqasid Al-Shariah, SDGs and Waqf. Tazkia Islamic Finance and Business Review, 15(1). https://doi.org/10.30993/tifbr.v15i1.251
Halim, A. H. A., Yusof, M. F. M., & Irshad, Z. F. A. (2024). Aplikasi Maqasid Shariah dalam pengiklanan amal: The application of Maqasid Shariah in charity advertising. UMRAN - International Journal of Islamic and Civilizational Studies, 11(2), 103–112. https://doi.org/10.11113/umran2024.11n2.613
Han, J., & Jung, K. C. (2024). The effect of a company's ESG level on labor investment efficiency. Korean Accounting Information Association, 42(1), 1–25. https://doi.org/10.29189/kaiaair.42.1.1
Handayani, S., Fauzi, E. F., S.N, R. D., & Damayanti, K. (2024). Systematic literature review: Political patronage versus merit system on local government analysis VOSviewer. Journal of Governance Innovation, 6(1), 18–27. https://doi.org/10.36636/jogiv.v6i1.4241
Haque, A., Manaf, N. H. A., Uddin, M. N., Akther, N., & Mokhtar, A. (2024). Enhancing community health sustainability through the use of Maqasid Al-Shariah theory. International Journal of Islamic Marketing and Branding, 6(2), 159–179. https://doi.org/10.1504/ijimb.2024.141988
Hehsan, M. R. (2026). An Islamic ethical framework for artificial intelligence and sedation in critical care: A Maqasid al-Shariah-based approach. International Journal of Humanities Technology and Civilization, 32–37. https://doi.org/10.15282/ijhtc.v11i1.13040
Hensley-Hackett, K., Bosker, J., Keefe, A., Reidlinger, D., Warner, M., D'Arcy, A., & Utter, J. (2022). Intuitive eating intervention and diet quality in adults: A systematic literature review. Journal of Nutrition Education and Behavior, 54(12), 1099–1115. https://doi.org/10.1016/j.jneb.2022.08.008
Imaniyati, N. S., Jamilah, L., Respati, T., & Alamsyah, I. F. (2022). Islamic hospital: Maqasid al-Shariah, Islamic tourism, and halal ecosystem prospects. In Proceedings of The International Halal Science and Technology Conference (Vol. 15, No. 1, pp. 81–89). Research Synergy Foundation. https://doi.org/10.31098/ihsatec.v15i1.598
Irum, A., & Sheikh, R. (2025). The moderating role of corporate governance in the nexus between digital transformation and corporate restructuring: Evidence from Shariah-compliant firms of Pakistan. Islamic Banking and Finance Review, 12(2), 27–60. https://doi.org/10.32350/ibfr.122.02
Ismail, M., Jan, S., & Ullah, K. (2023). Assessing Shariah disclosure in Pakistan. In Shariah Governance in Islamic Banking Institutions (pp. 21–35). Routledge. https://doi.org/10.4324/9781003324836-2
Jannah, S. N., Surbakti, M. S., & Ascarya, A. (2025). Developing green banking performance measurement for Islamic bank with Maqasid Shariah. Indikator: Jurnal Ilmiah Manajemen dan Bisnis, 9(1), 1. https://doi.org/10.22441/indikator.v9i1.29039
Kamali, M. H. (2025). Ijtihad Maqasidi. In Goals and Purposes of Shariah (pp. 100–107). Oxford University Press. https://doi.org/10.1093/9780197786390.003.0014
Kamaruddin, M. I. H., Zakaria, N., Hanefah, M. M. M., Shafii, Z., & Salleh, S. (2025). Maqasid Shariah disclosure: A case of a Malaysian Shariah-compliant company. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-05-2024-0164
Kang, S., & Kim, S. (2025). ESG performances and audit efficiency. Korean Accounting Information Association, 43(1), 1–27. https://doi.org/10.29189/kaiaair.43.1.1
Karp, D. R. (2024). Restorative justice in higher education: A review of the literature. In Restorative Justice and Practice in US Education (pp. 217–246). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-68412-8_12
Khan, M. (2025). Islamic banking: Formally Shariah-compliant, functionally conventional. Corporate Ownership and Control, 22(4), 78. https://doi.org/10.22495/cocv22i4art7
Kurniasih, N. I. D. (2023). Systematic literature review: Faktor-faktor yang mempengaruhi pemanfaatan pelayanan antenatal care pada ibu hamil. Journal of Midwifery Care, 3(2), 159–169. https://doi.org/10.34305/jmc.v3i02.760
Li, J., Zhang, J., & Zhao, K. (2025). Local protectionism and firms' ESG choices: Evidence from the judicial independence reform. Scottish Journal of Political Economy. https://doi.org/10.1111/sjpe.70042
Mahfudz, A. A., Firdaus, I. M., & Kuanova, L. (2026). Toward Shariah-compliant contract governance in Islamic banking spin-offs: Legal reflections on Indonesia's Law No. 4/2023. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 17(1), 1–26. https://doi.org/10.15408/aiq.v17i1.50882
Nurfalah, I., & Rofi'atu, L. (2023). Islamicity disclosure index for Shariah banking: A case. Maqasid al-Shariah Review, 2(1). https://doi.org/10.58968/msr.v2i1.310
Ochilova, D. (2026). Investitsiya loyihalarini baholash va monitoring qilishda Maqasid Al-Shariah va ESG indikatorlari integratsiyasi. Nashrlar, 5(3), 461–463. https://doi.org/10.60078/2026-vol5-iss3-pp461-463
Paik, M., & Paik, H. (2024). The effect of ESG management on corporate long-term performance. Korean Accounting Information Association, 42(4), 109–136. https://doi.org/10.29189/kaiaair.42.4.5
Rahman, S. N. H. A., Zin, N. H. M., Parid, D. M., Kambol, R., & Amin, S. M. A. (2026). An innovative Shariah-compliant hotel model based on Maqasid Al-Shariah: The Daruriyyat construct for tourist well-being and Islamic economic development in Malaysia. International Journal of Research and Innovation in Social Science, 10(18), 148–164. https://doi.org/10.47772/ijriss.2026.101800014
Rehman, H. A., Hasan, H., & Muhammad, M. (2022). The compatibility of SDGs with Maqasid al-Shariah: Are there any missing goals. Islamic Banking and Finance Review, 8(2). https://doi.org/10.32350/ibfr/2021/08/1686
Rusydiana, A. S., & Ali, M. M. (2022). The application of Maqasid Shariah on banking industry. Maqasid al-Shariah Review, 1(1). https://doi.org/10.58968/msr.v1i1.261
Soamole, S. B. (2025). Beyond Bitcoin: Developing a hybrid Shariah-compliant blockchain model for Islamic finance - Empirical evidence and simulation analysis. Research Square. https://doi.org/10.21203/rs.3.rs-7217669/v1
Sulaeman, S., Herianingrum, S., Ryandono, M. N. H., Napitupulu, R. M., Hapsari, M. I., Furqani, H., & Bahari, Z. (2025). Islamic business ethics in the framework of higher ethical objective (Maqasid al-Shariah): A comprehensive analysis and future research directions. International Journal of Ethics and Systems, 1–29. https://doi.org/10.1108/IJOES-12-2024-0398
Supriyadi, S., & Kurniawati, N. (2025). Hybrid contracts in Islamic banking: A Shariah and fiqh muamalat perspective. Masyrif: Jurnal Ekonomi, Bisnis dan Manajemen, 6(2), 347. https://doi.org/10.28944/masyrif.v6i2.2474
Sutainim, N. A., Mohammed, N. F., Mahmud, R., & Muhammad, R. (2023). Value creation for Shariah-compliant companies from the perspective of Maqasid Shariah: A proposed framework. Journal of Nusantara Studies, 8(3), 87–108. https://doi.org/10.24200/jonus.vol8iss3pp87-108
Syarifah, L., Rosman, R., Nasution, A. C., & Yusoff, S. S. B. M. (2025). Research trends on Maqasid Shariah and Islamic rural banks: A bibliometric investigation. International Journal of Islamic Economics and Finance Research, (1), 17–32. https://doi.org/10.53840/ijiefer217
Ullaha, S., & Kianib, A. K. (2025). Maqasid-al-Shariah-based socio-economic development index (SCECDI): The case of some selected Islamic economies. Journal of Emerging Economies and Islamic Research, 5(3). https://doi.org/10.24191/jeeir.v5i1.6285
Yasoa', M. R., Abdullah, W. A. W., & Endut, W. A. (2022). Shariah review and Shariah audit: Shariah compliance tools in Islamic banks. Journal of ASIAN Behavioural Studies, 7(21), 59–71. https://doi.org/10.21834/jabs.v7i21.407
Yulianti, C. D. R., Wahyuni, E. S., & Hariyadi, R. (2024). Evaluasi kinerja keuangan Bank Muamalat Indonesia menggunakan metode RGEC dan Islamicity Performance Index periode 2016–2020. Al-Intaj: Jurnal Ekonomi dan Perbankan Syariah, 8(2), 212. https://doi.org/10.29300/aij.v8i2.3719
Zaghloul, S. G. G., Ahmed, A. R. M., & Bakar, M. A. (2022). The purposes of Sharia (Maqasid Al-Shariah) from contemporary scientific research. International Journal of Academic Research in Business and Social Sciences, 12(1). https://doi.org/10.6007/IJARBSS/v12-i1/12067
Zaini, A., Ridho, M. Z., Muttaqin, E. Z., & Yussof, H. B. (2025). Adaptation of Islamic law in the Dutch colonial era: Fiqh al-aqalliyyāt, Maqasid Al-Shariah, and its legacy for modern Indonesian Islamic legal institutions. Jurnal Ilmiah Al-Syir'ah, 23(2), 265. https://doi.org/10.30984/jis.v23i2.2758
Zakariyah, L., Sarif, S. B. M., Noor, A. B. M., & Osman, R. Bt. A. (2022). Investment of Tabung Masjid in Malaysia toward fulfilling Maqasid-Al-Shariah. In Palgrave Studies in Islamic Banking, Finance, and Economics (pp. 255–274). Springer International Publishing. https://doi.org/10.1007/978-3-031-06890-4_15
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Jurnal Ekonomi Bisnis dan Akuntansi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
