Corporate governance (CG) in the banking sector is deemed as one of the most structured and regulated. When it applies to regional development banks, the regional dynamics contribute to the quality of corporate governance. Using Indonesia as a case in point, this paper aims at analyzing corporate governance practices based on dynamics amongst actors in regional development banks. Using agency and patron-client theory, the underlying dynamics amongst different actors representing the two-tier system applied by Indonesia are presented and elaborated. The study applies a qualitative approach. Data are collected using in-depth interviews with representatives from the board of directors and board of commissioners of selected regional development banks as well as regulatory agencies in Indonesia. This study proposes the application of the patron-client approach to understand the interactions amongst controlling shareholders, the board of commissioners, and the board of directors. In conclusion, a model of dynamic interactions amongst the actors is proposed based on two case studies constructed from a series of interviews to elaborate the dynamics.