Banking has an important role in supporting the activities of the business world. Especially for companies and individuals who need capital in order to develop a business. Besides that, it is also a place to save money that is safer than being kept in the company and will also get additional benefits in the form of interest. Since a bank collects funds from the public, it is also obliged to provide funds in ways that best serve the interests of the public in addition to the interests of the owners of these funds. It takes objectivity and wisdom to allocate funds because there is a high risk of misallocating them. This will result in bad credit which has an impact on huge losses.
By providing credit, the bank will get benefits in the form of interest. Most of the funds collected by banks are channeled to the public in the form of credit. More and more loans have been distributed, it can be said that the funds are productive for the benefit of the community who need funds to develop their business and for consumptive interests. However, with a bigger credit, it will also carry a high risk if the customer is unable to increase the installments or interest. For this reason, Banks need to carry out good cooperation between banks and customers