THE DUAL SUPERVISION MODEL AS A GOVERNANCE FRAMEWORK FOR ISLAMIC FINANCIAL INSTITUTIONS
Keywords:
Dual Supervision; Islamic Financial Governance; Taqwa-Based Ethics
Abstract
The rapid growth of the Islamic financial industry has not been fully accompanied by the strengthening of ethical integrity and Sharia governance quality. This study examines the concept of dual supervision as an integrative model that combines regulatory oversight and taqwa-based internal control within Islamic economic systems. Using a qualitative library research approach, this study analyzes classical and contemporary Islamic legal thought, particularly drawing on Mausu’ah Qadhaya Fiqhiyyah Mu’ashirah by Dr. Ali al-Salus, along with relevant literature on Islamic governance and financial analysis. The findings indicate that regulatory supervision ensures formal compliance with Sharia standards and institutional procedures, while it remains insufficient in preventing moral hazards and ethical violations. Conversely, taqwa functions as an internal spiritual mechanism that fosters accountability, integrity, and ethical responsibility among economic actors. The integration of both dimensions produces a dual supervision framework that strengthens Sharia compliance, enhances governance effectiveness, and supports sustainable Islamic financial development. Furthermore, the model is relevant to contemporary challenges such as financial technology innovation, regulatory fragmentation, and increasing complexity in Islamic financial transactions. This study contributes to the development of Islamic governance theory and offers a conceptual framework for improving both Sharia compliance and ethical performance in Islamic financial institutions.References
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Al-Saadi, A., Hassan, M. K., & Alkhan, A. M. (2022). Shari’a Governance in Bahrain: Analysing the Islamic Banking Industry’s Implementation of the Newly Issued Regulatory Shari’a Governance Module. Journal of Risk and Financial Management, 15(10), 418. https://doi.org/10.3390/jrfm15100418
Amirudin, A., Wahab, A., & Mardianto, D. (2025). The Role of Shariah Governance in Ensuring Ethical Economic Practices. East Asian Journal of Multidisciplinary Research, 4(7), 3577–3596. https://doi.org/10.55927/eajmr.v4i7.295
Djasuli, M. (2021). Internal Control Perspective Based on Islamic Worldview. Journal of Auditing, Finance, and Forensic Accounting, 9(2), 24–32. https://doi.org/10.21107/jaffa.v9i2.11992
Hailu, S. M., & Tekdoğan, Ö. F. (2023). Ensuring The Compliance of Islamic Finance Applications with Shariah Principles in Ethiopia: The Way Forward. Hitit İlahiyat Dergisi, 22(1), 139–168. https://doi.org/10.14395/hid.1247875
Halim, A. (2023). PERKEMBANGAN EKONOMI SYARIAH DI INDONESIA. Investama : Jurnal Ekonomi Dan Bisnis, 8(2), 101–120. https://doi.org/10.56997/investamajurnalekonomidanbisnis.v8i2.962
Haron, R., Othman, M., Faaza Fakhrunnas, & Naji Mansour Nomran. (2022). SHARI’AH GOVERNANCE OF ISLAMIC BANKS: THE ROLE OF SHARI’AH SUPERVISORY BOARD - A BIBLIOMETRIC ANALYSIS. IIUM Law Journal, 30(S2), 129–278. https://doi.org/10.31436/iiumlj.v30iS2.766
Hasan, L. O. (2024). Dewan Syariah Nasional – Majelis Ulama Indonesia Under Construction Sharia Economic Supervision System In Indonesia. Asian Journal of Engineering, Social and Health, 3(1), 134–146. https://doi.org/10.46799/ajesh.v3i1.228
Ihsan, N. (2022). MAKNA KATA TAQWA DALAM AL-QURAN: SURAT AL BAQARAH: MAKNA KATA TAQWA DALAM AL-QURAN : SURAT AL BAQARAH. Jurnal Studi Pesantren, 2(2), 49–58. https://doi.org/10.35897/studipesantren.v2i2.791
Irawan, H., Dianita, I., & Salsabila Mulya, A. D. (2021). PERAN BANK SYARIAH INDONESIA DALAM PEMBANGUNAN EKONOMI NASIONAL. Jurnal Asy-Syarikah: Jurnal Lembaga Keuangan, Ekonomi dan Bisnis Islam, 3(2), 147–158. https://doi.org/10.47435/asy-syarikah.v3i2.686
Jatmiko, W., Iqbal, A., & Ebrahim, M. S. (2024). On the Ethicality of Islamic Banks’ Business Model. British Journal of Management, 35(1), 115–136. https://doi.org/10.1111/1467-8551.12703
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Mahmud, B., Hamzah, H., & Imran, M. (2022). Jalan Menuju Taqwa Perspektif Syaikh ‘Abdul Qadir Al-Jailani (Analisis Penafsiran Ayat-ayat Taqwa dalam Tafsir al-Jailani). AL QUDS : Jurnal Studi Alquran Dan Hadis, 6(2), 905. https://doi.org/10.29240/alquds.v6i2.4608
Nasir, L. Z. (2025). PERBANDINGAN REGULASI DAN KEPATUHAN HUKUM DALAM PERBANKAN SYARIAH DI TENGAH TREN GLOBALISASI KEUANGAN.
Nurdiana, N., Abdullah, M. W., & Sumalin, S. (2025). Integration Model of Technology-Based Sharia Supervision in Earnings Management. Formosa Journal of Applied Sciences, 4(6), 1717–1726. https://doi.org/10.55927/fjas.v4i6.176
Putri, D. A. R., & Rachmawati, L. (2022). Analisis Tingkat Pertumbuhan Bank Syariah di Indonesia. Jurnal Ekonomika Dan Bisnis Islam, 5(1), 1–12. https://journal.unesa.ac.id/index.php/jei/article/view/16005
Samsul, S. K. (2024). Harmoni Ekonomi dan Moralitas: (Kajian Mendalam tentang Prinsip Hukum Ekonomi Islam). Fikroh, 8(2), 107–125. https://doi.org/10.37216/fikroh.v8i2.1732
Samsuri, S., Akhmad Sukardi, & Hasan Basri. (2025). Holistic Monitoring Model Based on Islamic Theology in the Education Management Control System. Nidhomul Haq : Jurnal Manajemen Pendidikan Islam, 10(3), 796–812. https://doi.org/10.31538/ndhq.v10i3.272
Sholikhah, I., Marsela, L., Syailendra, N. M., & Alifa, N. L. (2025). Strengthening Sharia Governance and Global Competitiveness through Regulation and Supervision.
Sriani, E., Hasan, F., & Ma’mun, S. (2023). Violation of human right for collateral fraud in Sharia financial institution based on fiduciary guaranty law and Rahn law. JURIS (Jurnal Ilmiah Syariah), 22(1), 133–143.
Tektona, R. I. (2022). TANGGUNG JAWAB HUKUM DEWAN PENGAWAS SYARIAH TERHADAP SECURITIES CROWDFUNDING SYARIAH DI INDONESIA. JOURNAL JUSTICIABELEN (JJ), 2(2), 139. https://doi.org/10.35194/jj.v2i2.2066
Usman, M. I. (2022). Sharia financial institutions compliance towards islamic principles in performing intermediation functions. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 14(1), 45–62.
