Jalb Al Maslahah: Concept Operational In Developing Islamic Banking Performance Based On Maqasid Al[1]Shari’ah Framework

Abstract

This research is motivated by Maqasid al-Syari'ah demanding that sharia banking not only operate within a halal framework, but also actively contribute to the social and economic welfare of society. However, in fact the performance of sharia banking still focuses on formal compliance without paying attention to the principles of maqashid Syariah. Therefore, evaluating Islamic banking performance is not enough if it only focuses on financial indicators such as profitability, efficiency and asset growth. This research aims to examine operational concepts in developing sharia banking performance based on the Maqasid al-Syari'ah framework. The research results show that there is a gap between theory and practice in the field. Some Islamic banks prioritize buying and selling based products such as murabahah, which are more financially profitable, rather than profit sharing based products such as mudharabah and musyarakah, which reflect the value of justice but have higher risks. In addition, the focus on profitability means that Islamic banks' social responsibility and zakat programs are still relatively small and have little impact. Financial inclusion is also not optimal, with most Islamic banks focusing more on middle to upper class customers, so that low-income groups are underserved. Although technology and product innovation have been introduced, the scale is still limited and does not fully meet people's needs. Thus, sharia banking needs to improve its strategy to be more in line with the goals of Maqasid al-Syari'ah.