Abstract :
The study aims to acquire and analyze data to determine the extent to which the role of the
principles of good corporate governance in banking to create a sound banking management in
Indonesia thus avoiding many banks insolvent. Analytical methods that I use for this is
normative legal research using qualitative analysis methods, which means the data obtained is
described by legal norms are then systematically analyzed by logical thinking so as to obtain a
clear picture of the legal issues are examined. The process of reasoning used in drawing a
conclusion is to use a deductive method of thinking that begins with common things whose truth
has been believed to be special as well. There is a positive correlation between the
implementation of the Good corporate governance on the performance of banks in the form of
publicly-listed companies which increased the price of banking stocks and the production of the
resulting bank. The principle of good corporate governance (GCG) in various profitoriented
business organizations, especially financial institutions / banks, are a necessity, even financial
institutions, particularly banks, should be a pioneer in the implementation of government policies
regarding the implementation of good corporate governance for banks.