<![CDATA[Despite Indonesia's adoption of Basel III standards and high formal compliance rates (96%) in Good Corporate Governance (GCG), a critical implementation gap persists between regulatory adherence and substantive governance effectiveness. This study addresses the fundamental question: How does RGEC framework implementation influence banking performance and financial stability in Indonesia compared to ASEAN counterparts? This research employs a mixed-methods approach combining systematic literature review with meta-analysis of 68 peer-reviewed empirical studies published between 2019-2024, supplemented by thematic analysis of regulatory documents and banking reports. The findings reveal that integrated risk management demonstrates significant positive effects on banking performance (coefficient: 1.174, p=0.0003), with credit risk and operational risk emerging as primary determinants explaining 67% of performance variance. Thematic analysis identifies three critical gaps: (1) compliance-substance disconnect in GCG (96% compliance vs. suboptimal effectiveness), (2) heterogeneous risk governance capabilities across banking tiers, and (3) limited integration of emerging risks into RGEC assessments. While Risk Profile, GCG, and Earnings negatively predict financial distress, Capital shows paradoxical positive effects, indicating that capital adequacy alone is insufficient without complementary risk governance quality. This research contributes a novel hierarchical risk-impact model specific to Indonesian banking and proposes an enhanced RGEC+ framework incorporating climate risk, cybersecurity, and fintech disruption dimensions. The principal theoretical contribution demonstrates that formal adoption of international standards does not automatically translate to substantive effectiveness without supporting organizational culture and capacity development—a critical insight for emerging market financial development.]]>
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