The Effect of Good Corporate Governance Principles on the Performance of Micro Finance Banks BPR In Serang Regency

International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue I, January 2021 | ISSN 2321–2705

The Effect of Good Corporate Governance Principles on the Performance of Micro Finance Banks BPR In Serang Regency

Rani Puspa¹, Dini Martinda Lestari², Angrian Permana^3
1,3 Management Departement, Bina Bangsa University, Serang, Indonesia
² Accounting Departement, Bina Bangsa University, Serang, Indonesia

Abstract-Transparency, accountability, responsibility, independence and fairness are basic principles of GCG implementation. This study used a questionnaire technique survey method distributed to 37 BPRs. The sample used was 74, each having received two respondents from each BPR in the Financial Section and Serang Regency General Section. Sample determination using purposeful sampling. The analytical technique is a simple linear regression analysis using SPSS. This study shows that applying the principles of good corporate governance that include transparency, accountability, accountability, independence, and fairness has a positive effect on the performance of Serang Regency Micro Finance Banks.

Keyword: good corporate governance, Micro Finance Banks, performance, serang.

I. INTRODUCTION

Serang Regency is noted to have the largest number of BPRs in Banten, so the potential for providing credit to the community is quite high. This requires BPRs to improve their business performance. The number of BPRs spread across Banten according to the Financial Services Authority (OJK) in 2018 was 137 BPRs, of which 49 BPRs are located in Serang Regency, based on GRDP data, the growth rate of Serang Regency at constant prices which continued to increase in 2011 by 1.75 % and in 2012 amounted to 2.94% (www.Serangkab.bps.go.id). The data obtained shows that good performance is not an easy thing, it requires the application of a good system and effective supervision. According to (Pratiwi 2014), the performance of a bank must be able to be measured and describe the condition of the company at that time, for that it is necessary to evaluate and measure the performance of the company. The Bank Indonesia version of performance measurement refers to the elements of Capital, Asset Quality, Management Earning Liquidity (CAMEL). CAMEL is used to measure the financial performance of its operational activities with a predetermined percentage level so that the bank soundness level can be found in the form of a composite improvement [1].

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