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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.

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