Shari’ah governance and performance of Islamic banks: do Shari’ah Supervisory Board independence and busyness matter?

Purpose This study aims to examine the impact of Shari’ah Supervisory Board (SSB) independence and busyness on the performance of Islamic banks (IBs). Design/methodology/approach This study uses a sample of 53 IBs across nine countries over the 2006–2021 period using regression analysis. Findings The results show that SSB independence adversely affects performance, whereas busyness enhances performance. Practical implications This study has important implications for regulators to improve the independence of SSBs, as findings demonstrate that SSBs lack autonomy. Originality/value The study complements the Shari’ah governance literature in terms of some under-investigated SSB attributes on the performance of IBs.