SUPERVISING MECHANISM OF BANK INDONESIAN IN THE ENFORCEMENT OF BANKING GOOD CORPORATE GOVERNANCE IN YOGYAKARTA

Rajagukguk, Franciska Marya (2007) SUPERVISING MECHANISM OF BANK INDONESIAN IN THE ENFORCEMENT OF BANKING GOOD CORPORATE GOVERNANCE IN YOGYAKARTA. S1 thesis, UAJY.

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Abstract

The rapid progression in banking industry was generally followed by the complexity of banking business which caused the increasing of bank risks. In order to increase the bank performance, to protect the necessities of the stakeholders and to increase the allowance toward the legislation of which is valid in general on banking industry, thus the bank should execute its business activities by regarding to the principals of good corporate governance. The problem was, whether PBI Number 8/4/2006 and its changes in PBI Number 8/14/2006 on the Enforcement of Good Corporate Governance to Public Bank has included the principals of good corporate governance to the General Bank and how is the supervising mechanism of Bank Indonesia in the enforcement of Banking Good Corporate Governance in Yogyakarta. The type of this research is normative legal research by studying books, legislations and various kinds of other literature of which has relevance to its case. From the explanation which presented in the discussion on the case above, thus it could be taken conclusion: First, that these five principals of banking good corporate governance, in example the principals of transparency, accountability, responsibility, independency and the fairness have been included in the description of the articles of which listed in PBI Number 8/4/2006 and its Change Number 8/14/2006 on the Enforcement of Good Corporate Governance to General Bank. Second, the supervision of Bank Indonesia in enforcing the principals of good corporate governance up to now has been joined by the general supervision of which is conducted both on site and off site.

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