Abstract: This study aims to analyze the effect of Good Corporate Governance (GCG) and Green Banking implementation on profitability levels of banking sector companies listed on the Indonesia Stock Exchange (IDX) during 2021-2022. The profitability indicator used is Return on Assets (ROA), while GCG is measured through institutional ownership, independent board of commissioners, and audit committee. Green Banking is measured using the Green Banking Index. The research population consists of 47 conventional banking companies listed on the IDX, with a sample of 28 companies selected using purposive sampling technique, resulting in 56 observations over two years. Data analysis employed multiple linear regression using SPSS version 29. The results show that Institutional Ownership has a significant positive effect on profitability (sig. 0.027 < 0.05), while Green Banking, Independent Board of Commissioners, and Audit Committee do not significantly affect profitability. These findings provide empirical evidence supporting stakeholder theory, emphasizing the important role of institutional investors in improving bank performance. This research contributes to the literature on corporate governance and sustainable banking practices in Indonesia.

Keywords: Good Corporate Governance, Green Banking, Profitability, Return on Assets, Banking.