Impact of Regulatory Technology, Shariah Regulations and Shariah Audit on Islamic Banking Performance: Mediating Role of Maqasid E Shariah and Financial Inclusion

https://doi.org/10.5281/zenodo.17943236

Abstract

Purpose- This paper will discuss the effects of the Shariah governance mechanisms on Islamic banking performance.

Design/Methodology- The study uses to analyze the data through PLS-SEM approach and SPSS.

Findings- The findings affirm that regulatory technology, Shariah regulations, and Shariah audit have a positive effect on performance. Also, these relationships are mediated significantly by financial inclusion and Maqasid al-Shariah.

Practical implications- Regulators need to come up with robust Shariah frameworks and promote the use of Regtech. These governance tools can be used by policy makers to promote the objectives of financial inclusiveness.

Managerial implications- Bank managers ought to make investments in Shariah audit and Regtech. They also need to balance business objectives with Maqasid al-Shariah policies, because, ethical performance is how financial success is achieved.

Originality/value- The study presents a new model that demonstrates the manner in which Shariah governance operates using both financial inclusion and Maqasid al-Shariah to improve performance.

Keywords- Islamic banking performance, Shariah governance, regulatory technology, Shariah audit, Maqasid al-Shariah and financial inclusion.