Abstract:

The purpose of this study is to examine the effect of corporate governance on the level of health of Islamic commercial banks with a dynamic model. The population used is Islamic commercial banks in Indonesia with a total sample of 11 Islamic commercial banks. This research data is in the form of secondary data sourced from the financial statements of Islamic banks and financial services authorities and data processing using the Vector Autoregression (VAR) method. The results showed that corporate governance (number of members, frequency of meetings and remuneration) affected the health level of Islamic commercial banks and the health level of Islamic commercial banks affected the number of members of corporate governance, and corporate governance affected corporate governance.