THE ROLE OF FINANCIAL VALUE ADDED IN THE ISLAMIC BANKING SECTOR

Abstract

The objective of this study is to determine the proper implementation of Value Added Finance in the sharia banking industry. The underlying issue in this study is the con sistent upward trajectory of the Financial Value Added (FVA) in the sharia banking industry during the last five years, especially from 2018 to 2022. This study aims to systematically examine the sharia banking financial sector. as shown from the compu tation of Financial Value Added. The present study employs quantitative descriptive methodologies. This study was carried out in the Islamic banking financial industry, specifically via the Islamic banking financial website. The data for this study was gathered by applying documentation methods to sharia banking financial reports ob tained from the sharia banking website. Based on Financial Value Added, the study findings indicate that the financial performance of Sharia Banking during the last five years (2018-2022) may be classified as satisfactory.