BANKING

BANKING

Banking is a company engaged in the financial sector, meaning that banking activities are always associated in the field of finance. So the banking world is inseparable from financial problems. Banking is also an institution of storage and distribution of funds from the public. In addition, banks as institutions that regulate traffic on a country's currency. One of the banking activity is the provision of financing or credit.

Understanding Banks and Banking Activity

In daily conversation, the bank is known as a financial institution whose main activities are receiving deposits, demand deposits, savings and time deposits. Then the bank also known as a place to borrow money (credit) for people in need. Besides, the bank also known as a place to change money, move money or receive any form of payment and deposit payments like payment of electricity, telephone, water, taxes, fees and other payments. The Bank is a business entity which collects funds from the community and distribute it back to the community. This is the kind described by Kashmir, the understanding of the Bank are as follows: "The Bank is a business entity which collects funds from the public in the form of savings and channel them to the community in the form of credit and / or other forms in order to improve the standard of living of the people."

From the above understanding, the bank is a financial institution whose main activity is collecting funds from society and channel them back to the community one of them in the form of financing or credit diberikan.Sedangkan by Statement of Financial Accounting Standards No. 31 of 2004 on bank accounting, the bank has a meaning: "The Bank is an institution that acted as financial intermediaries (financial intermediary) between the parties that have excess funds (surplus units) with the parties that need funding (deficit units), as well as a functioning institution facilitate payment of traffic.”

Based on the above understanding, it can be concluded that basically the bank is a financial institution which has the function as an intermediary or an intermediary for traffic circulation of money, that is by collecting funds from people with excess funds, in the form of deposits and then manage the funds with how to lend to people who need the funds as financing or credit, and may provide other financial services and facilitate payment of traffic.
The first banking activities is to collect funds from the public who is known as funding activities. Understanding the funding intention is to collect and raise funds by buying from the public. Purchase of public funds is done by banks with a strategy for how to install the community want to keep their funds in the form of deposits, the type of savings that can be selected by the public is as current accounts, savings accounts, certificates of deposit and time deposits. As a financial institution, activities of daily bank will not be apart from the financial sector. Activities of the banks simply we can say is buy the currency (raise funds from the public) and sells money (funds) to the general public. The banking activities in Indonesia according to Kashmir, namely:

1. collecting funds from society,

2. channeling funds to the community,

3. other bank services.

Nama : WeLthi sugiarti
NPM : 21208279
Kelas : 3EB13