Bank definitions
The sense of the Bank is a financial institution that has the authority to raise funds from the community and channel it back to the community in the form of working capital loans to improve the living standards of the general public.
The term "Bank" comes from the Italian language, "Banco" which means bench. In this sense the word bench is the operational place of bankers in the past in serving their clients. The term "Banco" is then changed and is more popular with the word BANK.
The Bank has several financial services products that can be used by the general public. Some of the main products of the Bank are:
- Savings
- Deposits
- Payment Services (salary, retirement, and more)
- Remittance Services (transfer)
- Deposit Services (electricity, telephone, water, and other bills)
- Credit card
- And others
As mentioned in the Bank's sense above, the function of the bank is as an institution that has the authority to raise funds from the community and channel it back to the community for a variety of purposes.
In addition, there are 3 functions of the Bank specifically, namely:
1. Agent of Trust
Banking activities can run well only if there is trust (trust) of the community. If people already believe in the Bank, they will not hesitate to deposit their funds in the Bank.
Confidence that the funds they deposited in the Bank will always be safe and can be disbursed at any time. Likewise, in lending the deposit to the community in the form of a loan is based on the trust and the prevailing law.
2. Agent of Development
In economic activity there are two things that can not be separated, namely the real sector and the monetary sector. Both of them influence each other.
Bank's activities to collect and distribute public funds open opportunities for audiences to engage in investment activities, distribution, and other economic activities that cannot be separated from the use of money.
If all these activities can go well, it will make a big impact on improving the overall economy of the community. Insurance Company, Manufacturing Company.
3. Agent of Service
In addition to collecting and channeling funds, the Bank also has other banking services offered to its community. As mentioned in the Bank's understanding, such banking services include remittance, payment, savings, credit card, and others.
