Good Governance in Bank Credit Contract Increases Customers' Trust
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Abstract
Banks' nature of business is a business trading in credits and money. Therefore, keeping and managing people's money is a business of trust defining bank as an institution of trust. This essay is made based on normative research exploring both statute approach and conceptual approach. Credit implementation is presented in the form of credit contract. Provisions in such contract must be fair and based on the principle of good faith which is reflecting good governance, which finally would increase bank's endurance through trust towards government and bank's good faith.