BANKING

The Bank is a financial intermediary institutions are generally established with the authority to accept deposits, lend money, and issue promissory notes or what is known as banknote.Kata derived from the Italian bank Banca means the exchange. While according to the Law of the Republic of Indonesia Number 10 Year 1998 On November 10, 1998 on banking, which is the bank is a business entity which collects funds from the public in the form of savings and channel them to the public in the form of loans or other forms in order to improve many social welfare

The banking industry has undergone major changes in recent years. This industry has become more competitive because of deregulation of the rules. Currently, banks have flexibility in the services they offer, the location where they operate, and the rates they pay depositors for deposits.

Understanding
According to Law Decree No. 10 Year 1998 on 10 November 1998 on the banks, it can be concluded that the banking business includes three activities, namely raise funds, distribute funds, and provides services to other banks. Events raise and distribute funds while the bank was successively principal activity provides services to other banks only support activities. Activities to collect funds, such as collecting funds from the public in the form of demand deposits, savings and time deposits. Usually he is given an attractive fringe benefits such as, flowers and gifts as a stimulus for the community. Activities to collect funds, in the form of lending to the public. Whereas in other banking services provided to support these primary activities. bank was founded by Prof.. Dr. Ali Afifuddin, SE In my opinion, the bank is a tool that facilitates the activities of the community to save money, in terms of commerce, or for future investment. The banking world is one institution that plays an important role in the economy of a country (particularly in the field of financing the economy). Here are some of the benefits of banking in the life:

As an investment model, which means that derivative transactions can be used as one model of investing. Although in general is kind of short-term investments (yield enhancement).

As a way of hedging, which means that derivative transactions can serve as one way to eliminate risk by hedging (hedging), or also known as risk management.

Price information, which means that derivative transactions can serve as a means of seeking or providing information about a specific commodity prices in the future (price discovery).

Speculative function, which means that derivative transactions can provide opportunities speculation (speculative) of market value changes of derivative transactions itself. 5. Production management functions carried out smoothly and efficiently, which means that derivative transactions can provide images to a manufacturer of production management in assessing a market demand and needs in the future. Apart from Functions-banking functions (bank) primary or derivatives, then one should pay attention to the banking world, is a philosophical purpose of the existence of banks in Indonesia. This is very clearly reflected in Article four (4) of Law Number 10 Year 1998 which explains, "Bank Indonesia aims to support the implementation of national development in order to improve equity, economic growth, national stability and prosperity toward the improvement of the people." Deeper review of the business activities of banks, the banks (banking) of Indonesia in carrying out its business should be based on the principle of economic democracy, which use the principle of hatian.4 This, clearly illustrated, because philosophically the bank has a function of macro and micro in the process of nation building .

Banking History
The Bank was first established in the form of such a firm is generally in the year 1690, when the British monarch willing to plan to rebuild naval power to compete with the French naval forces but the British government when it does not have the financial capability and then based on the idea that later William Paterson by Charles Montagu realized by forming a financial intermediary institutions that can eventually meet the financing fund in just twelve days.

History records the origin of banking activities is known at the time of a past empire in mainland Europe. Then the banking business has grown to West Asia by the merchants. The development of banking in Asia, Africa and America brought by Europeans during the colonial to country towns do well in Asia, Africa and the Americas. When traced, the history of banking familiar starting from the currency exchange service. Thus, in banking history, meaning the bank is known as a table where the currency exchange. In the course of the history of the kingdom in the first exchange between the kingdom of the money made one other royal circuitry. This exchange activity is now known as Foreign Exchange Dealer (Money Changer). Then in the next development, developing the banking operations into the care of money or so-called current deposit activity. Next banking activities increased with moneylending activities. The money saved by society, by banks lent back to the society needs it. Services of other banks followed in accordance with the development of the age and needs of an increasingly diverse society

History of Banking in Indonesia
Indonesia's banking history is inseparable from the Dutch East Indies colonial period. At that time De Javasche Bank, NV was founded in Batavia on January 24, 1828 and then followed Escompto Nederlandsche Indische Maatschappij, NV in 1918 as the holder of the monopoly purchase of agricultural products in domestic and overseas sales [and there are some banks that play an important role in Dutch East Indies. Existing banks were among others:

1. De Javasce NV.
2. De Post Poar Bank.
3. Hulp en Spaar Bank.
4. De Algemenevolks Crediet Bank.
5. Nederland handles Maatscappi (NHM).
6. Handles Nationale Bank (NHB).
7. De Escompto Bank NV.
8. Nederlansche Indische Handelsbank

In addition, there are also owned banks Indonesian people and foreigners such as from China, Japan, and Europe. These banks include:

1. NV. Nederlandsch Indische Spaar En Bank Deposit
2. National Bank Indonesia.
3. Merchant's Bank of gray.
4. Boemi Bank NV.
5. The Chartered Bank of India, Australia and China
6. Hongkong & Shanghai Banking Corporation
7. The Yokohama Species Bank.
8. The Matsui Bank.
9. The Bank of China.
10. Bank Batavia.

At the time of independence, Indonesia's banking stepped forward and grow again. Some Dutch bank dinasionalisir by the Indonesian government. The banks in the early days of independence, among others:

NV. Nederlandsch Indische Spaar En Deposit Bank (currently Bank OCBCNISP), founded 4 April 1941 with headquarters in Bandung

Bank Negara Indonesia, which was established on July 5, 1946, now known as BNI '46.

Bank Rakyat Indonesia, which was established on February 22, 1946. This bank was derived from De Algemenevolks Crediet Ginko Bank or Syomin.

Bank of Surakarta Airlines Adil Makmur (MAI) in 1945 in Solo.

Bank Indonesia in Palembang in 1946.

Bank Dagang Nasional Indonesia in 1946 in Medan.

Indonesian Banking Corporation in 1947 in Yogyakarta, later became Bank of Amrita.

Bank NV in Manado in Sulawesi in 1946.

Indonesian Trade Bank NV in Samarinda in 1950 and then merged with Bank of the Pacific.

East Bank NV in Semarang changed its name to Bank Gemari. Subsequently merged with Bank Central Asia (BCA) in 1949.

In Indonesia, the practice has spread to banking to remote rural areas. Form of bank financial institutions in Indonesia in the form of Commercial Banks, Rural Banks (BPR), Commercial Bank of Sharia, as well as BPR Syariah (BPRS). Each bank institutions is a different shape characteristics and functions

Government Banks
Through Decree No. 1/M/61 dated January 6, 1961 which prohibits the announcement and publication of monetary statistics and banking, then between the years 1960 to 1965, Bank Indonesia does not publish annual reports, including statistical data on the central clearing and calculation.

On July 5, 1964, on the basis of political considerations to simplify the command in the banking sector to support the Universal Development Planning, then in 1965 the government established a policy to integrate all the state banks into one bank under the name Bank Negara Indonesia, the initiative is the integration of government bank comes from the idea Jusuf Muda Dalam, who was then serving as Minister of the Central Bank / Governor of Bank Indonesia - the newly appointed President Director of BNI original position - and approved by President Sukarno. The basic idea is to make banking as a tool of revolution with the motto of the Bank under the leadership struggle in the Great Leader of the Revolution. Name of Bank Negara Indonesia (BNI) as a single bank, proposed by Joseph Young in itself. The result was the birth of this new structure makes the struggling bank;
Bank Indonesia to Bank Negara Indonesia Unit I,
Farmers and Fishermen Cooperative Bank and the Bank of Eczema Indonesia became Bank Negara Indonesia Unit II;
Bank Negara Indonesia to Bank Negara Indonesia Unit III;
State Commercial Bank became Bank Negara Indonesia Unit IV and
State Savings Bank became Bank Negara Indonesia Unit V.

But not all government bank successfully integrated into the struggling bank Bank Dagang Negara (BDN) and Bapindo. BDN Luputnya of this integration process, especially because President Director BDN JD Massie when it served as Minister of Reform of the National Private Banks which would have had enough clout to object to the pooling of BDN with other banks. Massie argues that this policy will confuse overseas correspondent banks for the settlement of L / C, export and import for the name of the same bank. Meanwhile, Bapindo not integrated into the Bank Fought because this bank under the Development Council chaired by the First Minister of Development Affairs with members of the Finance Minister, who is also Chairman of the Supervisory Board Bapindo, and Governor of Bank Indonesia as a member. Thus, through his position, the effect is strong enough to deter Bapindo integrated into the BNI.

Private Bank
In 1965 the government wants to mengabungkan all private banks or foreign banks in Private Development Bank as the sole collector and dealer banks of all progressive funds in the private sector and tools that can be used Universal Development Plan and other plans specified by the President of the Republic of Indonesia.

History of Government Banks
As is well known that the Indonesian banking world knew of the former penjajahnya, namely the Netherlands. Therefore, history is not free from the influence perbankanpun country menjajahnya for both government banks and private banks. In 1958, the government nationalized the Dutch-owned bank began with Handelsbank Nationale (NHB) in 1959 which subsequently changed to the State Commercial Banks (BUNEG later became Bank Bumi Daya), then in 1960 consecutive Escomptobank to Bank Dagang Negara (BDN) and Nederlandsche Handelsmaatschappij (NHM) to Farmers and Fishermen Cooperative Bank (BKTN) and then became the Export Import Bank of Indonesia (BEII).

The following will briefly described the history of government-owned banks, namely:

Central Bank
Central Bank of Indonesia is Bank Indonesia (BI) based on Law No. 13 Year 1968. Then asserted again circuitry Law No. 23 Year 1999.Bank was previously derived from De Javasche Bank in nasionalkan in the year 1951.

Bank Rakyat Indonesia and Bank Export Import
This bank was derived from De Algemene Volkscrediet Bank, then in the melting after a single bank under the name National Bank Indonesia (BNI), Unit II, which is engaged in rural and export import (exim), separated into:

In charge of rural to Bank Rakyat Indonesia and Law No. 21 Year 1968.

In charge of Exim with the Law No. 22 Year 1968 became Export Import Bank of Indonesia.
Bank Negara Indonesia (BNI '46)
Bank BNI underwent Unit III by Law No. 17 Year 1968 changed to Bank Negara Indonesia '46.

Bank Dagang Negara (BDN)
Derived from Bank Escompto BDN in nasionalisasikan with Regulation No. 13 Year 1960, but the PP (Government Regulation) was revoked by replaced by Law No. 18 Year 1968 as Bank Dagang Negara. BDN is the only bank outside Government yangberada Bank Negara Indonesia Unit.

Bank Bumi Daya (BBD)
BBD originally derived from the Nederlandsch Indische Hendles Bank, then became Hendles Nationale Bank, the bank then became Bank Negara Indonesia Unit IV and based on Law No. 19 Year 1968 into Bank Bumi Daya.

Development Bank of Indonesia (Bapindo)

Regional Development Bank (BPD)
This bank was established in the regions level I. Its legal basis is the Law No. 13 Year 1962.

State Savings Bank (BTN)
BTN, comes from De Post Paar Bank which later became the Postal Savings Bank in 1950. Furthermore, the Bank Negara Indonesia Unit V and the latter being the State Savings Bank by Law No. 20 Year 1968.

Bank Mandiri
Bank Mandiri is the result of the merger between Bank Bumi Daya (BBD), Bank Dagang Negara (BDN), Bank Indonesia's Development (Bapindo) and the Export Import Bank Indonesia (Bank Exim). The result of the four bank mergers was conducted in 1999.

The purpose of banking services
Bank service is very important in a country's economic development. Banking services are generally divided into two objectives. First, as the provider payment mechanism and an efficient tool for customers. For this, the bank provides cash, savings, and credit cards. This is the most important role of banks in economic life. Without the provision of an efficient means of payment, then goods can only be traded by way of barter that took time.

Second, by accepting savings from customers and lend it to those in need of funds, means that banks increase the flow of funds for investment and more productive utilization. If this role is well underway, the economy of a country will menngkat. Without the flow of these funds, the money just sit in the pocket of someone, that person can not obtain a business loan and can not be built because they do not have the loan fund.

Banking services are actually very much, only very few people who know about it. The purpose and benefits are very good for our customers. But many who use them for criminal acts, such as ATM burglary and forgery of books and other savings.

Bank types and functions
Three main groups of financial institutions - commercial banks, savings institutions and credit unions - also called storage because most of the institutions funded by customer deposits. Commercial banks are the largest group of institutions when measured by the amount of storage assets. They perform a similar function with the savings institutions and credit unions, namely, accepting deposits (liabilities) and make a loan (however, they differ in the composition of assets and liabilities, which are much more variable).

Asset concentration ratio of bank size, shows that banking consolidation has reduced the share of assets seems most small banks (assets under $ 1 billion). These banks - with assets under $ 1 billion - tend to specialize in retail or consumer banking, such as providing housing mortgages, consumer loans and deposit locally. While the bank's assets is relatively large (with assets of more than $ 1 billion), consisting of two classes are regional or super regional bank. They are involved in more complex wholesale about komersialperbankan activities, including consumer loans, residential and commercial and industrial loans (D & I Lending), both regionally and nationally. In addition, banks - big banks have access to buy the fund (fund) - such as inter-bank funds or government funds (federal funds) - to finance their lending and investment activities. However, some very large banks have different designations, namely the Central Bank. Currently, the banking organization to form groups of five Central Banks, namely: Bank of New York, Deutsche Bank (through the acquisition of the bankers trust each other), Citigroup, JP Morgan, and HSBC Bank in the United States. However, the numbers have declined due to megamergers. It is important to note that, assets or loans not always an indicator of a bank is the central bank. But, combined with the dependence on source location non deposit or loan funds.

banking services
Services - services are provided to support the raise and distribute funds, either directly related to savings and credit activities and indirectly. Other banking services include the following:

Deposit services such as electricity deposits, telephone, water, or tuition

Payment services such as payroll, pension, or gift

Remittance services (transfers)

Billing services (collection)

Clearing

Sales of foreign currency

Storage of documents

Check services tour

Credit card

Services - services that exist in the capital market such as loans and issuance of securities traders.

Services Letter of Credit (L / C)

Bank guarantees and bank references

Other bank services.