Abstract
Islamic Bank (IB) governance considers the overall functions so that it has a dual-board governance
structure. Therefore, the IB has a Sharia Supervisory Board (SSB) and a Board of Directors (BoD), which are
components of sharia banking governance. This study examines the Sharia Supervisory Board
components, which consists of the SSB's existence, the size of the SSB, the cross-section of SSB members,
the educational qualifications of SSB members, and the expertise of SSB members. And the BoD elements
consist of BoD size and BoD Independence. This study examines the influence of dual-board governance
on IB performance in Indonesia and Malaysia through multiple regression methods. The results of this study
indicate that BoD is proven to improve the performance of IB companies. As a supervisor, the BoD ensures
that corporate governance has been carried out correctly to reduce the risk of agency costs and
increase company profits. The role of the BoD as a manifestation of corporate governance will not be
maximized in enhancing company performance if it is not accompanied by the role of SSB in the IB
Company. The company can not only generate profits but also fulfill Islamic law to provide added value
for stakeholders. This study provides empirical evidence that the dual-board governance structure is an
essential aspect of managing an IB company. It is hoped that the IB Company will pay attention to these
two aspects to improve its performance sustainably. Also, this study's results can become a reference and
become a consideration for Islamic banking in improving the quality and optimizing the function of
corporate governance. Besides, it shows the role of the dual-board governance structure specifically for
IB performance.