The Urgency of Business Activity Financial Reports in People’s Business Credit As A Basis for Banking Protection Based on The Principles of Agreements

People’s Business Credit constitutes an important instrument in supporting national economic growth, particularly for micro, small, and medium enterprises. However, the disbursement of People’s Business Credit also entails risks for the banking sector if it is not supported by adequate monitoring mechanisms. One crucial aspect of such monitoring is the debtor’s obligation to submit periodic financial reports. The main issue examined in this study concerns the urgency of submitting periodic financial reports as a form of legal protection for banks based on the principles of agreements, including the principles of balance, good faith, and legal certainty. This research also analyzes how the obligation to provide periodic financial reports functions as an instrument of debtor accountability, a means of implementing the principles of agreements, and a mechanism of preventive protection for banks in minimizing the risk of default. This study employs a normative juridical method with a statutory approach by examining positive legal norms related to the implementation of People’s Business Credit. The legal materials used consist of primary legal materials in the form of laws and regulations governing the policy and implementation of People’s Business Credit, as well as secondary legal materials comprising books, journals, and relevant scholarly literature. Data were collected through document study and analyzed using systematic legal analysis to construct legal norms in a logical and structured manner. The findings indicate that the obligation to submit periodic financial reports should be positioned as an integral part of the banking supervision system, as it not only provides legal protection for banks but also strengthens the balance of interests between banks and debtors within a fair contractual framework.