ABSTRACT
As a business entity, banking institutions that include state owned banks, national private banks, and foreign private banks, play a vital role in both maintaining funding sustainability and raising funds from and by the community. The existence of the banking world is an absolute prerequisite for the growth of the economy of a country. There should be various regulations and legal standards to update the development of the banking world. In addition, the bank should be selective in giving micro credit approval to either individual customers or micro business entities to avoid the risk of bad debt. Furthermore, the guarantee of immovable assets is crucial in dismissing all adverse effects to occur when the default takes place.
