Tag Archive for: Government of Indonesia

The competition in the banking industry is tighter, as well as the existence of rent banks. Financial institutions are segmented into formal and informal financial institutions. Informal financial institutions are prevalent in rural communities and among small entrepreneurs. This study focuses on disclosing the strategy of Indonesian banks in responding to the existence of rent banks. The research method used is empirical legal research. The data obtained were analyzed using deductive methods, namely processing data from primary and secondary data sets. The study results indicate that Rent Bank is a financial institution that serves as a temporary buffer for families with a weak economy even though the interest charged is very high. In responding, there is a need for stimulation and assistance for efforts to revitalize and strengthen traditions that reduce poverty and problems arising from the existence of rent banks. One way is to carry out cultural management that is inherently community and government assistance to traditions and traditional institutions that can reduce poverty.