The Impact of the Independent Board of Commissioners' Supervisory Mechanism on the Relationship Between Intellectual Capital and Banking Performance

This research delves into the role of Indonesia's Independent Board of Commissioners (IBC) in strengthening corporate governance systems and how it affects the relationship between intellectual capital and the efficiency of the country's banks. In recent years, intellectual capital has emerged as a critical differentiator in the banking sector, especially in a financial services environment that heavily relies on knowledge and technology, including digitalization. The utilization of intellectual capital, supported by an effective IBC supervisory mechanism, can optimize banking performance. From 2019 through 2023, 124 banks meeting the requirements are used to analyze the banking industry. The findings of this study show that the impact of Indonesia's IBC on the correlation between intellectual capital and bank performance is substantial. This study underscores the vital role of Indonesia’s IBC in enhancing corporate governance, optimizing intellectual capital utilization, and improving banking efficiency. Strengthening IBC oversight can maximize performance, emphasizing the need for governance reforms and regulatory support to enhance competitiveness in the evolving financial sector.