Developing A Maqasid-Based Governance Framework for Islamic Banking: Integrating Ethics, Sustainability, and Digital Transformation

Abstract

This study conceptualizes a Maqasid-Based Governance Framework (MBGF) for Islamic banking in Indonesia. Using a qualitative-conceptual approach, the study synthesizes maqāṣid al-sharīʿah, Value-Based Intermediation (VBI), Environmental, Social, and Governance (ESG), and digital ethics. The conceptual analysis indicates that compliance-based governance has not yet comprehensively connected Shariah objectives with institutional mechanisms and outcome-based accountability. MBGF comprises four interrelated components: maqāṣid ethical foundations, institutional governance through VBI, sustainability through ESG, and digital-ethics safeguards. Maqāṣid functions as the normative criterion, institutional governance translates it into organizational practices, while ESG and digital ethics operate as parallel domains of application. The framework is a conceptual proposition rather than an empirically validated causal model. Its contribution lies in integrating previously fragmented governance perspectives and providing a foundation for expert validation, indicator development, and further empirical testing.