TAF PUBLISHING

Islamic banks underlie the fundamental principles of Shariah, encompassing all business activities, financial contracts, and transactions. The Shariah Supervisory Board (SSB) plays an important role in the Islamic banking system, and it has an important impact on their performance and stability. The obedience of Shariah is an obligation that must be implemented by each bank based on Shariah. The research aims to determine the effectiveness of supervision and counseling in the implementation of Shariah principles by the SSB in Shariah Rural Bank Mitra Cahaya Indonesia Yogyakarta. As an independent agent of the National Shariah Board-Indonesian Ulema Council works overseeing and has a big responsibility. In overseeing the new product, the SSB took several steps, i.e., first, the SSB asked for an explanation from the board of directors of the new products that will be issued. Second, check if the new product is following Islamic principles. Third, give an opinion on Shariah's new product. This study uses a qualitative approach with descriptive data. Data were obtained through interviews, observation, and literature review. The study concluded that the SSB is a significant department in Shariah Rural Bank Mitra Cahaya Indonesia Yogyakarta, like the other departments. The interference in decision-making and management could adversely affect the Shariah Rural Bank Mitra Cahaya Indonesia Yogyakarta. In general, the supervision by the SSB in Shariah Rural Bank Mitra Cahaya Indonesia Yogyakarta has been effective because the SSB not only does the good supervision but also makes improvements and developments. The SSB monitors with his best ability and prioritizes the Shariah Rural Bank Mitra Cahaya Indonesia Yogyakarta.