T This study to analyze the effect of banking risk and corporate governance on banks\\\' financial performance, measured using return on asset. the factors examined include the capital adequacy ratio, operating expenses to operating income (bopo), non-performing loan, audit quality, board size, third-party funds, exchange rate and gross domestic product. the research sample consist of 43 banks with a total of 215 observations, selected using purposive sampling. the study uses secondary data obtained from the annual reports of banking companies listed on the indonesia stock exchange (idx) for period 2020 to 2024. the analysis method employed is panel data regression using eviews 13 software. the result indicate that capital adequacy ratio and board size have a positive effect on financial performance. bopo, npl and gdp have a negative effect on financial performance. other variables, such as audit quality, third party funds and exchange rate do not show a significant financial performance. the findings are expected to provide implications for financial managers in developing strategies to improve financial performance by strengthening capital, increasing operational efficiency, managing credit risk, ensuring an optimal board size and considering the dynamics of economic growth.