Lena Erdawati, H. Hamidah, Gatot Nazir Ahmad, Dede Sunaryo, Hendra Galuh Febrianto
The prevalence of bankruptcies among rural banks indicates corporategovernance issues (Jallali & Zoghlami, 2022). This study examines the influence of the functions of the board of commissioners, internal audit, risk monitoring, and compliance with credit banking stability in Indonesia. This study uses a quantitative methodology, utilizing data collected from rural banks in Indonesia with 300 respondents. This research is supported by utilizing partial least squares (PLS) for data analysis. The findings show that the role of the board of commissioners, risk monitoring, and compliance substantially positively impact the stability of credit banks in Indonesia. However, internal audits have a negligible effect on the stability of rural banks. This is evident from empirical evidence that highlights various shortcomings in supervising the internal audit function of credit banks. Therefore, the results of this study show that it is important to increase the authority of the board of commissioners, improve risk monitoring, and strengthen the compliance function to improve the stability and reliability of credit banking in Indonesia. This research is limited in terms of the scope, which exclusively concentrates on rural banking in Indonesia. © 2025, Virtus Interpress. All rights reserved.
Universitas Negeri Jakarta, Jakarta, Indonesia; Faculty of Economics and Business, Universitas Muhammadiyah Tangerang, Tangerang, Indonesia
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