THE IMPACT OF THE SUPERVISORY STRUCTURE ON THE FINANCIAL PERFORMANCE OF SHARIA RURAL BANKS IN INDONESIA

This study aims to determine the criteria effect of the Commissioners Board and the Sharia Supervisory Board on financial performance with Good Corporate Governance as an intervening variable on ShariaRural Bankin Indonesia. This research usesaquantitative approachwith path analysis method and targets the population of ShariaRural Bank throughoutIndonesia. The independent variables of this study are the Commissioner's Board and the ShariaSupervisory Board while financial performance with the proxy of Non-Performing Financing is identified as the dependent variable, and Good Corporate Governance as an intervening variable. The findings show that:the criteria of the commissioner'sboardhave a positive effect on Good Corporate Governance;the criteria of theShariaRural Bank havea positive effect on Good Corporate Governance;the criteria of the Commissioners Boardand the ShariaSupervisory Boarddo not have asignificanteffect on financial performance,and Good Corporate Governancedoes not have aneffect on financial performance. This research can potentiallybe used a reference point bythe ShariaRural Bankin Indonesia and the Financial Services Authority regulators in the formulation of rules regarding the criteria of the Commissioners Boardand ShariaRural Bank.Through this research, it is recommended that that the ShariaRural Bankcan form a Commissioners Boardand ShariaRural Bankprofessionallytoincrease the Good Corporate Governanceand financial performance of the ShariaRural Bank.