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Meaning, History, Function & Type of Bank [LENGKAP]

Understanding of Bank

In general, the Bank is an institution engaged in finance. Where the bank has several services provided to the community to improve the quality and standard of living of the community.

Where services are provided include granting customer savings, currency circulation, business financing from an organization or company and

Banks have an important role in society, because with the existence of a Bank, the exchange of money circulating in the community will be easier. In addition, financial transactions will also be easier to do anywhere and at any time.

 Understanding of Banks According to Experts

In addition to the general understanding of the Bank, there are also several experts who explain the meaning of the Bank, as follows: [19659007] According to Prof. GM. Verrijjin Stuart, the Bank is a business entity that has the goal of satisfying credit needs, either by using its own means of payment or with money obtained from other people, and distributing new exchange instruments in the form of money.

According to Pierson who is a Dutch economist, explains that the Bank is an agency or institution whose task is to receive credit, deposits from the public in the form of demand deposits, time deposits and savings, where these will be managed by channeling in the form of various investments and credibility to private or government enterprises. [19659007] According to Abdul Rachman, Banks are a type of institution in the financial sector that carries out various services such as: providing loans, circulating money, supervising currencies, storing valuable objects, and financing businesses from companies and so on.

According to Jerry M Rosenberg, states that the Bank is a body or o rganisasi in the form of companies that make receipts of deposits and current accounts that have a period of time, pay interest, provide loans, make discount records make investments in government or other securities.

According to JD Parera, banks are a business entity that collects funds from the community in the form of deposits and also distributes these funds to the community in the form of loans and other forms with the aim of improving people's lives.

According to Drs. T. Gilarso, a bank is an institution in the financial sector whose main business is raising funds, providing credit or loans and other services in traffic payments and circulation of money.

According to A. Abdurrachman, banks are financial institutions that carry out various kinds of services, including loans, circulation of money, storage of valuables, and financing of business enterprises etc.

History of the Bank

History of the Bank ” width=”542″ height=”339″/>

The bank was first established in the form of a firm in 1690. Where at that time, the British empire had the will to plan to rebuild fleet strength at sea. This was done to strengthen competition with the French naval forces.

However, the British government at that time did not have sufficient funding capabilities based on William Paterson's idea, later realized by Charles Montagu by establishing a financial intermediary institution to fulfill the funding for the construction of the fleet.

However, in recording history, it turned out that the Bank and its banking activities already existed when in the days of the kingdom in Europe. Perbankkan then developed into West Asia through traders. Then, the development of banking in Asia, Africa and America was brought by Europeans who were carrying out occupation on the continent.

Banking activities were first carried out by money exchange. Where money changers are now called Foreign Exchange Traders (Money Changer). The next banking activity is continued with activities to save money or save money, borrow money, and other services. Where the service developed along with the times that occurred.

Bank Functions

 Bank Functions

In carrying out its activities, banks have various functions. Where these bank functions can be elaborated through the following explanation:

1. As Agent of Trust

Banks have functions as agent of trust. Where activities carried out in banking are based on the existence of trust. So that people give their trust in banks for all the money they save.

2. As Agent of Development

The bank has a function as an agent of development. Where banks are tasked with mobilizing funds that are useful for the economic development of a country's . So that the Bank can optimize its services that are used by the public to make investments, etc.

3. Money printing

The bank also has a function to make money printing to be used as a currency in everyday community transactions.

4. Payment support

With the existence of a Bank, payments will be easier to do anywhere and anytime according to the needs of the community.

5. Deposit fund collector

In addition to the above functions, the Bank can also function as a place to save money. So that customers can entrust their money to the Bank.

Types of Banks

 Types of Banks

Banks in Indonesia have various types according to their respective functions. Where the following are types of banks that can be distinguished according to their functions:

1. Central Bank

Central banks are types of banks that have the task of issuing banknotes and metals. Where the money will be used as a means of payment in daily transactions.

2. Commercial Banks

Commercial banks are a type of bank that not only lends or invests savings, but can provide loans.

3. Rural Banks (BPR)

People's Credit Banks (BPR) are types of banks that can carry out conventional activities based on a sharia principle, in which activities cannot provide services in payment.

4. Islamic Bank

Sharia Bank is a type of bank that conducts operations based on the principle of profit sharing in accordance with the rules of Islamic teaching regarding the law of usury.

Now, with some information about the understanding of the Bank it will be easier for you to gain new knowledge related to the Bank. Where this information can be used as your additional reference in learning various sciences, especially in banking. Hopefully this article will be useful for you.

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