Banking

BANKING

1. Understanding Bank
The Bank is a financial intermediation agencies generally established with the authority to accept deposits of money, lending money, and publish a promissory note or known as banknote. Word bank comes from Italy banca means money exchange place. Whereas according to the laws of the State of the Republic of Indonesia No. 10 of 1998 on 10 November 1998 on banking, the bank is a business entity that brought together the funds from the community in the form of savings and channel it to the public in the form of loans and other forms or in order to improve the living standards of many people.

2. The Functions of the Bank
Based on Act No. 10 of 1998 the Bank in Indonesia, the function is:
a. As a place to gather the funds from the Community Bank in charge of securing the money savings and deposits as well as savings in newspaper or giro account.

The function is a function of the main bank.

b. As a distributor of funds or lender Banks give a credit for the community which require especially for productive efforts.

3. The Type of Bank
1) The Central Bank
According to Act No. 3 of 2004, the Central Bank is State agencies that have authority to issue a valid means of payment of the State, formulate and implement monetary policy, organize and maintain smooth payment system, set up and oversee banking. The Central Bank in question is Bank Indonesia.
a) Destination Bank Indonesia
According to THE RI No. 3 of 2004 Article 7, described the purpose of Bank Indonesia is to achieve and maintain the stability of the value of the dollar.
To achieve a goal that is Bank Indonesia implement monetary policy on an ongoing basis, consistent, transparent, and should consider the public policy of the Government in the field of economy.
b) task of Bank Indonesia
Based on Act No. 3 of 2004, the Bank Indonesia has a task as follows:
(1) establish and implement monetary policy
(2) set up and maintain smooth payment system
(3) organize and oversee the bank

2) Public Bank
Understanding public Bank Indonesia Bank Regulations according to no. 9/7/PBI/2007 the bank is carrying out business activities in conventional and Islamic principles or based on in its activities provide services in payment traffic.
Public bank has many activities. As for the activities of the Bank's main public, among others:
a) brought together funding from the community in the form of giro, deposits, certificates of deposits, and savings;
b) give credit;
c) published a letter of acknowledgment of debt;
d) move money, both for the benefit of the customer or for the benefit of the Bank itself;
e) receive payments from securities and bills for doing calculations or with third parties;
f) provides a place to store goods and securities; and
g) doing the placement of funds from the customer to other customers in the form of securities which are not recorded in the stock exchange.

3) Bank Perkreditan Rakyat (BPR)
BPR is a bank that carry out business activities in conventional or based on the principles of Sharia in its activities do not provide services in payment traffic. BPR Activities much more narrow if compared with the activities of the Bank.
BPR in conducting its activities is not the same with the activities carried out by the conventional bank (the Bank). There are activities that should not be done by the BPR, namely:
a) stash of giro receive,
b) following the clearing,
c) conduct foreign exchange activities,
d) undertake activities perasuransian.
As for the forms of activities to be carried out by the BPR include the following things.
a) brought together the funds in the form of savings and deposits of savings deposits.
b) Provide loans to the community.
c) Provides financing and placement of funds based on Islamic principles.

4. Banking Services
Services-these services are provided to support a smooth gather and transmit funds, either directly related to the activities of the savings and credit and not directly. Other banking Services, among others, as follows:
• deposit Services such as electricity, phone, deposit, or tuition
• payment Services such as payment of salary, retirement, or a gift
• services of money transfer (transfer)
• billing Services (clearance fee)
• Clearing (clearance or financial data exchange between participants clearing both a/n participant or a/n customers)
• sale of foreign currency
• document Storage
• Services check destinations
• a credit card
• Services – services that exist in the capital market loan such as emissions and traders effect.
• Service Letter of Credit (L/C)
• Bank guarantees and bank references
• other bank Services.

5. Accounting source of Funds
a. Giro
Giro is a third-party deposits to the Bank that doing so can be done at any time by using checks, warrant, or other payment by way of a balance transfer.
b. Savings
Savings deposit is a community of doing so can be done by the depositors at any time desired.
c. Deposit
Savings deposits is a community of doing so can be done after a period of time which has been approved.
d.Certificates of deposits
Certificate of deposits bank product is similar to the deposits but different principle. Certificate of deposit is the financial instruments by a bank on dterbitkankan rallies and expressed in a number, period and a specified interest rate.

6. Distinction certificates of deposits with Deposits
1. certificate of deposit Interest can be calculated in advance.
2. certificates of deposits published top performance, are published on behalf of the deposit. So the holder of the certificate of deposit anyone he, can withdraw funds in certificates of deposit.
3. certificates of deposits of merchantability and moved tangankan.
4. certificate of deposit can not be extended automatically.

Advantage

1. The calculation of the interest in advance, so that the interest you earn can be invested in other places
2. The interest rate of interest, usually higher than ordinary deposits
3. Can be used as a guarantee of the credit and can dollars traded freely.
4. Guaranteed by LPS (LPS) in accordance with the provisions in force.

Losses

1. When the funds disbursed before maturity, it will be subject to a certain amount of penalty.
2. when a certificate of deposit is lost, then its discoverer could mencairkannya easily.

Accounting Banking

Accounting is defined as the art of recording, classification and overview in a way that duly and in units of money transactions and events are at least partly have the nature of the financial as well as the results of such registration interpretation.

BANKING ACCOUNTING EQUATION:

ASSETS = LIABILITY
TREASURES OF THE BANK = OBLIGATIONS BANK + CAPITAL BANK