Paper 1

BUSSINESS of ECONOMY
Banking
A paper is presented to
Drs. Zainuddin Cangara, MA.as
A Part in Fulfillment of Bahasa Inggris Bisnis (6202)

By
MUHAMMAD IKRAM ALI
Reg. Number : 2015 30 018

Department Of Accounting
Makassar Higher School of Economics (STIEM)
2016

PREFACE

Praise constituent prayed to Allah Subhanahu wataala, because of His grace we

can complete a paper entitled Banking. This paper was submitted in order to fulfill the
duties of a teacher of Economics.
We would like to thank all those who helped to make this paper can be completed
in accordance with the time. The paper is still far from perfect, therefore we expect
criticism and constructive suggestions for the perfection of this paper.
Hopefully, this paper provides useful information for the public and for the development
of science for all of us.

Makassar, 16 Juny 2016

Composer

Table Of Contents
page

TITTLE INTRODUCTION.......................................................................................

PREFACE...................................................................................................................

ii

TABLE OF CONTENTS...........................................................................................

iii

CHAPTER 1 (MATERIAL OF DISCUSSION)

A. Definition Bank..........................................................................................

B. Purpose Banking........................................................................................

C. Types Bank.................................................................................................

CHAPTER 2 (CONCLUSION & SUGGESTION)

A. Conclusion.................................................................................................

B. Suggestion..................................................................................................

REFERENCE.............................................................................................................

CURRICULUM VITAE (CV)...................................................................................

CHAPTER II
(MATERIAL OF DISCUSSION)
A. Definitions Bank
According to Law Decree No. 10 of 1998 on 10 November 1998 on banking, it can be
concluded that the banking business includes three activities, namely collecting funds, funds,
and provide other banking services. Activities of collecting and distributing funds is the main
activities of the bank while the other bank services only provide support activities. Activities
to raise funds, in the form of raising 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. Activity funds, in the form of lending to the public.
While other banking services provided to support the smooth operation of the primary. bank
founded by Prof. Dr. Ali Afifuddin, SE. Here are some benefits of banking in life:
1. As an investment model, which means that derivative transactions may be used as one
model of investing. While generally a type of short-term investments (yield enhancement).
2. As a way of hedging, which means, of derivative transactions can serve as one way to
eliminate the risk by hedging (hedging), or also known as risk management.
3. The price information, which means that derivative transactions could serve as a means of
seeking or providing information about certain commodity prices in the future (price
discovery).
4. Functions speculative, which means that derivative transactions could provide an
opportunity speculation (speculative) to changes in the market value of such derivatives
transactions.
5. The management function of production runs smoothly and efficiently, which means that
derivative transactions could give an idea to the management of the production of a
manufacturer in assessing a demand and market needs in the future.

Apart from funsi-function banking (bank) primary or derivatives thereof, it is to be

considered for the banking world, is philosophically purpose of the existence of a bank in
Indonesia. This is very clearly reflected in Article four (4) of Law No. 10 of 1998 which
explains, "the Indonesian Banking aims to support the implementation of national
development in order to improve equity, economic growth and national stability towards
improving the welfare of the people". Look a little deeper on the business activities of the
bank, then the bank (banks) Indonesia in the conduct of its business should be based on the
principles of economic democracy that use banking principles hatian.4 It is, clearly
illustrated, because philosophically bank has a micro and macro functions to the process of
nation building.

B. Purpose Banking
Bank services is very important in the economic development of a country. Banking
services are generally divided into two purposes. First, as a provider payment mechanism and
an efficient tool for customers. For this, the bank provides cash, savings, and credit cards. It
is the role of the most important banks in the economic life. Without the provision of efficient
payment instrument, then goods can only be traded by barter that takes time.
Secondly, by accepting savings from clients and lend to those in need of funds, means
that banks increase the flow of funds to because they do not have the loan funds.

C. Types of bank
a. Central Bank

The central bank in a country, in general, is a government agency responsible for monetary
policy in the territory of the country. Central Bank seeks to ensure stability of the currency,
the stability of the banking sector and the financial system as a whole.
In Indonesia, the central bank held by Bank Indonesia.
The central bank is an institution that is responsible for maintaining price stability or
the value of the currency of that country, which in this case is known as inflation or rising
prices that in another sense a decline in the value of money. Central Bank to keep inflation
under control and always be at the lowest possible value, or the optimal position for the
economy (low / zero inflation), by controlling the balance of the amount of money and goods.
If the money supply too much then the central bank to use the instrument and its
pervasiveness.
The role of central banks
1.Memelihara government accounts
2. Provide temporary loan
3. Provide special loans
4. Carrying out transactions involving the sale and purchase of foreign exchange
(forex)
5. Receiving tax payments
6. Assist payments from central to local government
7. Collecting and analyzing economic data isB. BANKS

Definition of Commercial Bank by Bank Indonesia Regulation No. 9/7 / PBI / 2007 is
a bank conducting conventional business and or based on sharia principles in its activities
providing services in payment traffic. Services provided by the commercial banks is public,

meaning that it can provide the entire existing banking services. Commercial banks often
called commercial banks (commercial banks).

Role of Commercial Banks

1. Creation money
Created money commercial banks are demand deposits, ie means of payment via transfer
mechanism (clearing).
Smoothness
2. Support Payment Mechanism
Another function of commercial banks is also very important is to support the smooth
operation of payment mechanisms. This is possible because one of the services offered by
commercial banks are services related to payment mechanisms.
Some well-known services are clearing, transfer money, deposit-deposit acceptance,
facilitation payment by cash or credit.
3. Union Savings Fund Society
Fund the most widely collected by commercial banks is deposits. In Indonesia deposits
consist of demand deposits, time deposits, certificates of deposits, savings and other form that
can be equivalent to them. The ability of commercial banks to raise funds is much greater
than with other financial institutions.
4. Support Smooth International Transaction
Commercial banks also needed to facilitate and or facilitate international transactions, both
transactions of goods / services and the capital.
5. Storage Valuable Goods

Storage of valuables is one of the earliest services offered by commercial banks.

Communities can store valuables owned such as jewelry, money, and a diploma in the boxes
are intentionally provided by the bank to rent (safety box or safe deposit box).
6. Provision of Other Services
In Indonesia, the provision of other services by the commercial banks are also more
numerous and widespread. Nowadays we have to pay electricity, telephone, mobile phone
buy credits, send money via atm, pay employee salaries using bank services.
These services greatly facilitate and provide security and comfort to those who use it.

c.BPR (Rural Bank)

BPR is a bank conducting business in a conventional or based on sharia principles in their
actions do not provide services in payment traffic. BPR activity is much narrower than the
activities of commercial banks. BPR activity was generally similar to the activities of
commercial banks, which became only difference is the amount of bank services performed
BPR much narrower. BPR is limited by various requirements, so it can not do the restricted
movement of commercial banks. Limitations BPR activity is also associated with the
founding mission of BPR itself. In practice BPR activities are as follows:
1. Compile funds only in the form of:
Deposit Savings
Savings Deposits
2. Channel funds in the form:
Investment Credit
Working Capital Loan
Trade Credit

Because of the limitations that are owned by BPR, then there are some restrictions that must
not be carried out BPR, are as follows:
Accepting Deposits Demand
Conducting Foreign Exchange (FX)
Conducting Insurance

CHAPTER II
(Conclusion & Suggestion)

A. Conclusion
According to Law Decree No. 10 of 1998 on 10 November 1998 on banking, it can be
concluded that the banking business includes three activities, namely collecting funds, funds,
and provide other banking services. Activities of collecting and distributing funds is the main
activities of the bank while the other bank services only provide support activities. Activities
to raise funds, in the form of raising 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. Activity funds, in the form of lending to the public.
While other banking services provided to support the smooth operation of the main
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 a banknote.
B. Suggestion
Banks should future must attach great importance to the improvement of the facilities
and security so that users can find comfort

10

REFERENCE

http://artikaamanda.blogspot.com/2012/03/fungsi-dan-peranan-bank-umum-bank.html
http://id.wikipedia.org/wiki/Bank
http://kholiscollection.blogspot.com/2011/02/makalah-uang-bank-dan-percetakanuang.html
http://tutorialkuliah.blogspot.com/2009/09/contoh-kata-pengantar-makalah.html
http://wartawarga.gunadarma.ac.id/2010/02/definisi-fungsi-dan-peranan-bank-umumdalam-perekonomian/

11

Curriculum Vitae (CV)

Name

: MUHAMMAD IKRAM ALI

Birth Date / Place

: July 1, 1997 / Sinjai

Hobby

: Basket

Ambition

: Bupati / Gubernur

History School

: SD Negeri 23 Biringere Sinjai

SMP Negeri 2 Sinjai
SMA Negeri 1 Sinjai
STIEM Bongaya Makassar (Now)

12