Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia

Research Article

Fraud in Sharia Rural Bank: How It Affects Their Roles in Assisting Micro Small Medium Enterprise in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.13-8-2019.2294393,
        author={Yusmansyah  Yusmansyah and Nafsiah  Mohamed and Farah  Aida and Wiwik  Utami},
        title={Fraud in Sharia Rural Bank: How It Affects Their Roles in Assisting Micro Small Medium Enterprise in Indonesia},
        proceedings={Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICFF},
        year={2020},
        month={5},
        keywords={fraud sharia rural bank micro small medium enterprises},
        doi={10.4108/eai.13-8-2019.2294393}
    }
    
  • Yusmansyah Yusmansyah
    Nafsiah Mohamed
    Farah Aida
    Wiwik Utami
    Year: 2020
    Fraud in Sharia Rural Bank: How It Affects Their Roles in Assisting Micro Small Medium Enterprise in Indonesia
    ICFF
    EAI
    DOI: 10.4108/eai.13-8-2019.2294393
Yusmansyah Yusmansyah1,*, Nafsiah Mohamed2, Farah Aida2, Wiwik Utami3
  • 1: Institute of Digital Business
  • 2: Universiti Teknologi MARA
  • 3: Mercu Buana University
*Contact email: yusman1957@gmail.com

Abstract

This concept paper studies fraud in Sharia Rural Bank and how it affects their roles in assisting Micro Small Medium Enterprises (MSMEs). The study reviews the literature on the history of fraud in Sharia Rural Bank. This paper explores previous research and court cases on fraud in sharia rural banks. All these information was collected from journal articles, conference proceedings, newspaper, books and internet search related to this issue. It was found that Sharia Rural Bank play important role in assisting MSMEs however there were a lot of issues found such as miss interpretation in carrying out the sharia principle that affect their roles in helping MSMEs. Therefore, this paper suggests good corporate governance is vital to ensure the fraud risk is minimized, thus improving their effectiveness in assisting MSMEs in Indonesia.