BANK

Bank is a company that collects society fund or

deposit and distributes to society using bank loan

and or other form in order to increase people life style

Definition of Bank

Function of Bank 1. Bank as an organization to

raise fund: - Bank receive money and other fund from society - In other words, bank raises money from the third party - Kinds of funds :

SavingsTimed deposit, ordemand deposit (demand deposit).

2. Bank as a lenderBank loans the fund

to society, both for developmental effort or consumption.

3. Bank as a service provider - Covering service in paying

mechanism (fund transfers) - Facilitating foreign trading finance - Storing high-value goods - and trust services

(for example: bank functions as a fund governance or corporate related with publication and redemption of stock and obligation)

Bank Agglomer

ation

1. “Public Bank”- The bank which can give service

in paying traffic- In term fund raising, particularly

recieves deposit in the form of demand deposit, time deposit, certificate of deposit, savings and or other forms

- Types of bank organization: private companies; corporations; government corporations

2.“Bank Perkreditan Rakyat (BPR) “- Bank that recieves deposit such as timed deposit, saving and the other similar forms- Distributes fund to society in credit form- BPR is not allowed for traffic paying

(clearing activity) - Types of bank organization: private

company; government corporation; a cooperation society

Bank Source of Fund

Fund that is paid by stockholders

Retained earning

Equity

Society deposit as:savings, deposit or demand deposit

Margin deposit, means :income of service that served by bank to society

for example: opening Letter of Credit (L/C), leasing safe deposit box , etc.

Society Funding

Fund that is loaned by other financialinstitution from the bank such as:- Short-range loan

(come from money market) - Long-term borrowing

(come from off-shore loan)

Fund of other Financial Institution

- Fund that is operated to be used by society, or

- By bank itself as an investment (earning assets or non earning assets)

Instilling the Bank Fund

Earning Assets Unsecured service (loan or credit) Buying marketable securities

Non Earning Assets Buying constant asset and

inventories Laid up minimum liquidity

(primary reserve)

Bank Supporter Institute

1. Clearing's promoter institute

smoothening paying giral traffic (lalu lintas giral)

2. Interbank Call Money Market emphasized on accomplishing the need of bank fund

3. Insurance Institute giving insurance on loan surety

4. Leasing Institute this institutions prepare capital assets

A. Cash and cash vault (Khazanah)definition :

1.Cash is cartal money (bank note and also coin) saved in bank cash vault

Cash vault is a special room to save cash money, foreign currency , securities, etc.

Banking Operational Basis

2. Cash Current

- receipts moneymoney on bank cash, crescent,

come from :* saving cash at teller counter

* cash withdrawing from Bank Indonesia* cash depositing from other

branches.

- Reducing of cash balance, dwindling

because of :* Cash withdrawing from

teller counter* Cash depositing to Bank

Indonesia* Other branch office

withdrawing cash

3.Cash Securefor example using:- cash vault secure (khazanah), as:* combination key* two exclusive keys

owned by two officials during man hour

* door shall be closed* free of inflammable goods* people may not left alone at

this room* provided with firing

extinguishing equipment* alarm and emergency-

lighting

- Cover Note Cash in safe

Assurance of loss from saved money loss in cash vault, ATM machine, and money exists at counter during operational and also non-operational hours

Cash in Transit

lose money because robbery or another depravity, during trip (from/to BI, from/to branch interoffice, from/to ATM machine)

- Other secure efforts Route and time of trip (from/to BI, from/to branch interoffice, from/ to ATM machine) shall vary , at police guard, etc

B. Exchange Rate

1. Definition

price a currency to another currency

2. Exchange Rate Typea. Transaction exchange rate

used upon customer, buying/ selling foreign exchange (exchange rate TT, exchange rate B/N, exchange rate TC)

b. Taxes Rate

utilized to count rupiah point of taxes taken up by valas transactions

c. Selling/buying rate foreign exchange branch

used to buy/sell valas among branch office with Central Office, transferred by Central Office to branch everyday coincide withtransactions exchange rate

C. Clearing1. Background :

- each bank has clients

- one bank’s clients does ransactions with the other bank client. - transactions among client were not done in cash, for example by use of cheque, bilyet is demand deposit, transfer, documentary bill

2. Clearing Mechanism

3. Clearing Participation differentiated as two, which are:

- direct participantbranch office enrolls at clearing

institute, usually main branch office - indirect participant

branch office follows direct participant (usually assistants branch office)

4. Clearing Institute

usually Bank Indonesia at that city; if no isn’t possible, Bank Indonesia commands a government bank as clearing institute