Recent Development of Islamic Banking Performance Measurement

This study aims to review the development of research related to Islamic banks' performance measurement and various alternative models. It uses a meta-analysis approach to identify other previous studies from various journals and relevant researches. The results show that the measurement of Islamic bank performance mostly uses financial performance measurements similar to conventional bank performance measurements, which use financial ratios and efficiency. There have been several serious efforts to develop alternative models for measuring Islamic banks' performance to reflect their nature and objectives better. These models include the Islamicity Index, Economic Contribution and Muslim Communities, Social Performance Index, Maqashid Index, and Islamic Bank Maqashid Index. However, eventually, these models are still in the early stages of development and have several weaknesses. Thus, it is still necessary to develop a model for measuring Islamic bank performance relevant to its philosophy and objectives.JEL Classification: G21, L25How to Cite:Setiawan, A. B., Amilin., & Al Arif, M. N. R. (2020). Recent Development of Islamic Banking Performance Measurement. Etikonomi: Jurnal Ekonomi, 19(2), 203-220. https://doi.org/10.15408/etk.v19i2.15706