Banking institution is a financial institution that has relationship with the society. The relationship between
banking institution and the society is a non-contractual relationship, one of that relationship is relationship
of prudence. Prudential relation of a bank is embodied with the precautionary principle which must be done
by the bank to keep public’s funds carefully because the funds in a bank are public’s funds. Precautionary
principle is always done by the bank, especially when the bank’s about to distribute credits to the customers
who would like to loan credits. In relation to the tax amnesty, the bank can utilize tax amnesty to improve
precautionary principle of a bank when the bank’s about to distribute credits. The purpose of this essay is to
determine whether banking institutions utilize tax amnesty to improve the precautionary principle of a bank.
This essay discusses about banking institutions that utilize tax amnesty program to improve precautionary
principle of a bank. The method used in this essay is empirics to know directly about the social facts
occurred, that’s whether banking institutions utilize tax amnesty to improve precautionary principle. The
methods used are by observations and interviews. The result from this essay is that banking institutions
utilize tax amnesty program to improve precautionary principle of a bank in order to distribute credits to
customers who would like to loan credits.