Managing municipal solid waste (MSW) is a critical for Indonesia, as the country produces a substantial amount of waste annually. However, Indonesia's recycling rate remains limited, less than 25% of its waste, with the rest ending up in landfills. To address this, waste banks have emerged as a community-based solution to enhance MSW management through recycling. Although waste banks currently contribute only 7% to recyclable waste management, they hold promising potential, especially considering their close ties to households, the primary waste producers in Indonesia. Unfortunately, documentation of waste bank successes in Indonesian regencies is scarce, as most success stories are limited to major cities. This article conducts a literature review on waste bank implementations across various regencies, evaluating their accomplishments, obstacles and potential contributions to local MSW management. The review draws upon scholarly publications and various government reports, regulations and websites dedicated to updates on waste bank activities. Waste banks play a crucial role in enhancing environmental quality by promoting proper waste disposal and reducing landfill waste. They create economic opportunities, increasing income for both customers and administrators. Additional services, such as banking facilities encompassing savings, loans, daily necessities and bill payments, amplify their significance. To fully harness the potential of waste banks, support is imperative. Establishing adequate infrastructure and providing capacity-building for administrators are essential. Although regulatory frameworks offer opportunities, the impact of regency-level regulations on waste bank growth varies and necessitates further examination. Support mechanisms should be tailored to align with local characteristics and requirements.