Modern society today can not be separated from the role of banking. Starting from storing, borrowing, to performing financial transactions, all use the services of banks as an intermediary.
But in fact a lot of people who do not understand what the bank is literally, the type, until its function for society at large. Well, to know the complete related banks, consider the following explanation.
Banks are literally derived from the Italian language, namely Banco which means bench. The bench itself refers to a table used by bankers to conduct operational activities serving the community or customers. The term bench was growing into a Bank.
In addition to the literal meaning, the bank also has several definitions broadly, ranging from the applicable law in the Republic of Indonesia, Wikipedia, to Financial Accounting Standards (PSAK).
Here’s the complete definition:
RI Law no. 10 of 1998 on Banking (article 1, paragraph 2), states that a bank is a business entity that collects funds from the public in the form of savings and distributes it to the community in the form of credit and or other forms in order to improve people’s lives.
RI Law no. 10 Year 1998 concerning Banking (article 1, paragraph 3) explains, the definition of commercial banks is a bank that performs conventional activities as well as sharia in its activities providing financial services in payment traffic.
Wikipedia is mentioned, the bank is a financial intermediary institution, generally established with the authority to accept deposits of money, borrowing money, and issuing promissory or banknote.
Financial Accounting Standards (PSAK) Number 31 described bank is an institution that acts as a financial intermediary between parties who have excess funds and parties that require funds, as well as an institution that serves to smoothen the payment traffic.
Susilo, Triandoro, and Santoro provide a view of the bank functions in outline as follows:
Banks function to collect public funds and channel back to the community for various purposes or commonly known as the function of Financial Intermediary.
In addition to having an outline function or in general, banks also have specific functions, namely:
1. Agent of Trust
Referring to the agent of trust which means trustee, the bank is seen as an institution that relies on trust as the key and the main basis of banking activities. Trust includes all operational activities that concern the interests of the community as a customer.
Logically, every society that entrusted funds to the bank had already had confidence in the financial institution. It can be said that the belief is a public belief that entrusts funds to a bank that can take the money at any time without any problems, without fear of bankruptcy, etc. so that customers can withdraw funds anytime and anywhere.
So even for the type of loan services provided by the bank to the customer, also based on the principle of trust. Banks need not be afraid or worried if the debtor misuses or is unable to return the loan funds provided by the bank as a creditor.
This is because the bank will conduct an assessment of the ability to repay the loan taken by the customer. In addition, the bank also believes that the debtor has a positive intention to return the funds borrowed to the relevant bank.
To cultivate the interest of prospective customers in order to save in related banks, some banks also apply the remuneration to customers. Reply such services in the form of flowers, profit sharing, service, and so forth. So the higher the repayment given by the bank, the more enlarge the customer’s opportunity to save funds in the bank.
2. Agent of Development
Banks are mentioned as agent development because they are able to provide activities that allow people to make investments, distribution, consumption or services that use money as a medium. All banking activities will certainly affect the economic development of the community.
As is known, the real sector and the monetary sector are two sectors that affect each other. If one sector is not good, then this will affect the other side as well.
3. Agent of Service
As everyone knows, banks offer a variety of financial services to the community such as fund storage, lending services, and so on. The Bank itself is a community fund raiser that is also intended for the community, so the services offered by this bank is closely related to the economic activities of the community. asuransi pendidikan anak
Banking law in Indonesia has arranged at least some types of banks in Indonesia based on function, ownership, status, and how to determine the price.
The following are bank classifications, including:
1. Type of Bank Viewed from Function
Law no. 7 of 1992 which was then affirmed in the Banking Act no. 10 Year 1998, the type of bank seen from its function, among others:
The Central Bank, a state-owned financial institution, is given the responsibility to regulate and oversee the activities of financial institutions and ensure that the activities of these financial bodies will create a stable level of economic activity.
Commercial Bank, which is a bank conducting conventional banking business activities and / or based on Islamic sharia principles which in its activities provide services in the payment traffic.
The general nature here is to provide all existing banking services and operate in almost all parts of Indonesia. Commercial banks became known as commercial banks.
Bank Perkreditan Rakyat (BPR), which is a bank conducting conventional banking activities as well as Islamic sharia principles which in its activities do not provide services in the payment traffic.
BPR activities are narrower than commercial banks, in which BPRs only serve fund collection and channeling of funds only. Even in raising funds, BPRs are prohibited from receiving demand deposits. In any operational area, BPRs are also restricted to operations in certain areas. Another prohibition is not participating in clearing and foreign exchange transactions.
2. Type of Bank Judging from Ownership
The types of banks in terms of ownership are broadly divided into 4, namely state-owned banks (BUMN), national private-owned banks, foreign-owned banks, and mixed banks. For example, for state banks (BUMN) include Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Tabungan Negara (BTN) and others.
While the national private banks include Bank Muamalat, Bank Central Asia (BCA), Danamon, and others. And foreign-owned banks include Citibank, Standard Chartered Bank, Commonwealth, and so on. For this type of mixed banks are Mitsubishi Buana Bank, Interpacific Bank, Sakura Swadarma Bank, and other banks.
3. Type of Bank Judging from Status
Distribution of bank classification according to the status in question is the ability of banks in serving the community in terms of the number of products, capital, until the quality of service. The classification of banks seen from the status is divided into two, namely foreign exchange banks, and non-foreign exchange banks.
Foreign exchange bank itself is a bank that can conduct transactions to foreign countries or activities related to foreign currency. For example, transfer to overseas, overseas collection, until travelers check.
While non-foreign exchange banks are banks that do not have transaction services to cross-country widely. Despite having, but only limited to certain countries only.
4. Type of Bank Judging from How to Determine Price
Based on the type of bank seen from how to determine the price, the bank divided by conventional principles, and sharia principles. Conventional banks apply an interest rate system or commonly known as a spread base, as well as a fee base method or term to calculate the required cost.
As for sharia banks, he implements a system of agreements in accordance with Islamic law with related parties in the deposit of funds, financing, and various other banking activities.
Banks with Sharia principles apply the following system:
Financing uses the principle of profit sharing or called mudaraba
Financing with the principle of equity participation or known as musharakah
Principles of buying and selling of goods with a profit or with the term murabaha
Financing of capital goods based on pure lease without choice or ijara
Nor apply the principle with the option of transferring ownership of goods leased from the bank by another party or known as ijara wa iqtana.
Convenient to Transact with Banking Problems
Thus some things to know and understand related to banking. By understanding what is a bank, how the bank system, and some principles of the bank itself, then we can use it with the maximum. Using bank products without hesitation because of the benefits gained.