Abstract

Indonesian banks are providing legal contract assurances to enterprises. The nature of market guarantees determines the disparity in banking sector performance. In Indonesia, banking guarantees are split horizontally, making it difficult for clients to choose the appropriate guarantee. This study aims to assess the effect of business type, application programming interface (API), and perceived economic risk on bank guarantees in Indonesia. The study's model is built on a novel and original concept previously mentioned in the literature. The findings of this study indicate that the impact of business type, API, and perceived economic risk on bank guarantees is substantial. This research contributes significantly to this unique framework of bank guarantee in the literature. This study has significant theoretical ramifications as it expands our understanding of banking guarantees in Indonesia. This study's conclusions apply to improving banking guarantees in Indonesia for the advancement of economic sustainability. The study is based on a research gap. Still, it also contains several limitations that necessitate the exploration of additional literature on banking guarantees by researchers in the future.