Institutional Repository UIN Sunan Kalijaga YogyakartaGREEN BANKING, CORPORATE GOVERNANCE, DAN RISIKO BANK SYARIAH DI NEGARA-NEGARA OKI: PERAN REPUTASI BANK SEBAGAI VARIABEL MODERASINIM.: 23300011030Muhammad Dedat Dingkoroci AkasumbawaauthorThe development of global sustainable agenda has urged sharia banks in Organization of Islamic Cooperation (OIC) member countries to integrate Green Banking practice and to strengthen Corporate Governance, as part of institution risk management strategy. However, the effectiveness of both mechanisms in influencing cross-border sharia bank risks is quite distinct. In addition, the moderating role of bank reputation in this relationship has received limited attention in the existing literature. Therefore, this study aims to examine the influence of green banking performance and corporate governance mechanism over sharia bank risks, as well as to test the moderating role of bank reputation in these relationships. This study employs panel data from 40 sharia banks operating in 10 OIC member countries over the period of 2015–2024, resulting 400 observations. Green banking performance is measured using the Islamic Green Banking Performance Index (IGBPI), a framework developed by Imam Al-Ghazālī in his maqāṣid al-sharīʿah and extended by incorporating the dimension of ḥifẓ al-bīʾah (environment preservation) through Jasser Auda's contemporary maqāṣid systems approach. Corporate governance mechanism is measured by the number of members of the Board of Directors (BOD), the Sharia Supervisory Board (SSB), and the Risk Management Committee (RMC). Bank risk is measured using the Z-score as an indicator of bankruptcy probability. The study employs a dynamic panel data regression using the Generalized Method of Moments (GMM) estimator. Robustness tests are conducted using a split-sample approach based on OIC regional classifications and countries' income levels. Leverage and economic growth are included as control variables. The findings reveal that green banking performance has a negative and statistically significant effect on the Z-score, indicating that greater implementation of green banking is associated with higher sharia bank risk in the short term as a consequence of substantial initial investment requirements, operational adjustment processes, and limited sustainable infrastructure readiness during the early stages of implementation. In contrast, corporate governance mechanisms exhibit heterogeneous effects on bank risk. The number of BOD and SSB members has a positive and statistically significant effect on the Z-score, indicating that larger BOD and SSB sizes are associated with lower bank risk through enhanced monitoring capacity and stronger checks and balances. Conversely, the number of RMC members has a negative and statistically significant effect on the Z-score, suggesting that a larger committee size is associated with higher bank risk in response to the increasing complexity of the risks faced by banks. Bank reputation is found to play a significant moderating role in the relationship between green banking performance and Islamic bank risk. The interaction between bank reputation and green banking performance has a negative coefficient on the Z-score, indicating that green banking implementation remains associated with higher bank risk in the short term among banks with stronger reputations. Furthermore, bank reputation strengthens the relationships between the number of SSB and RMC members and Islamic bank risk, indicating that the effects of the size of these two governance mechanisms become stronger in banks with higher reputations. In contrast, bank reputation does not significantly moderate the relationship between the number of BOD members and Islamic bank risk. The robustness tests indicate that the effect of green banking performance on Islamic bank risk is context-dependent and influenced by regional characteristics and country income levels. Across regional classifications, green banking performance is associated with lower bank risk in the Gulf Cooperation Council (GCC) and South Asia, whereas no significant effect is observed in Southeast Asia. Based on country income levels, green banking performance does not have a significant effect on Islamic bank risk in either high-income or developing countries. These findings suggest that the effectiveness of green banking implementation in reducing Islamic bank risk is not universal but depends on institutional readiness, regional characteristics, and the level of financial system development across OIC member countries.297.273 Ekonomi Islam / Fiqih Muamalah2026-08-18UIN SUNAN KALIJAGA YOGYAKARTA;PASCASARJANAThesis

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