THE PERFORMANCE OF FOUR BANKS IN INDONESIA BASED ON MAQOSID INDEXAND PROFITABILITY IN 2012 (COMPARATIVE STUDY OF ISLAMIC AND CONVENTIONAL BANKING)

Abstract

The financial performance does not reflect the overall performance of a bank, primarily public interest objectives. Aspect of Maqosid sharia should be applied to achieve Mashlahah in addition to financial performance of banks (economic performance), but also be seen from the aspects maqasid sharia.

This study aims to analyze the performance of banks in Indonesia in terms of aspects of maqasid sharia using the MaqasidShariah Index (MSI) approach and bank profitabilities by comparing (PER, ROA and ROE) in 2012. Object of study is four Banks in Indonesia, among others: Bank Muamalat Indonesia (BMI), Bank SyariahMandiri (BSM), Bank Central Asia (BCA), and Bank Mandiri.

The results showedthatperformance measurementcan be donewith model of maqasidsharia Index(MSI) andprofitabilityapproachformeasuringthe financialperformanceand we are able to know therankofthe four banksfrom both of them (MSI and Profitability approach).

Key Word: Banking, MaqosidSyariah, Profitability