Corporate governance impacts Indonesian banks' credit and liquidity risks.
The research looked at how well-run companies affect how banks manage risks in Indonesia. They studied market risk, credit risk, and liquidity risk in banks from 2010 to 2016. By analyzing annual and financial reports, they found that good corporate governance in Indonesia can lower credit and liquidity risks in banks. Banks with different governance ratings had varying levels of credit and liquidity risks, but not market risk.