Definition and Types of Bank

Understanding bank according to Financial Accounting Standards (2002: 31) is as follows: "Banks are business entities that raise funds from the public in the form of credit and or other forms in order to improve the living standard of the people".

According to Law 10 RI tender number 1998 on the bank is a bank is a business entity which collects funds from the public in the form of savings and channel these funds back to the community in the form of credit or other forms in order to improve the lives of the people tafar.

From the description above can be explained that the Bank is peruahaan engaged in finance, banking business means always related financial problems. So it can be concluded that the banking business covers three main activities, namely:

1. Accumulating Fund

2. Channelling Funds

3. Giving Services Other Banks

Activity is to collect and distribute funds basic banking activities. While the activities menerikan other Bank services is a supporter of both the above activities.

Definition raise funds to raise funds for a principal banking activities. Sedangankan activity receiving services other Bank is a supporter of both the above activities.

Understanding is to collect funds or seek funds (money) by buying from the public to the shape demand deposits, savings and time deposits. Purchase of public funds is done by Bank by placing a variety of strategies that people want to invest their funds.

Write your understanding of other services that are complementary supporting services or banking activities. Services are provided primarily to support the activities of collecting and distributing funds, either directly related to savings and credit activities and indirectly.

Classification of the types of banks can be distinguished by:

a. Seen View of Functions

According to the Law no.14 of 1967 according to the type of banking functions consist of:

1. Commercial Banks

2. Development Bank

3. Savings bank

4. Bank Market

5. Village Bank

6. Village Office

7. Bank Employee

8. Other Bank

But after exiting the banking principal Act 7 of 1992 confirmed again with the release of RI law no.10 of 1998. the type of banking consists of:

1. Commercial Banks

2. Rural Bank (BPR)

b. In terms of status

1. Exchange Bank

The status of foreign bank or foreign bank is a bank that are able to carry out transactions abroad or dealing with foreign currencies as a whole.

2. Non-bank foreign exchange

Banks with non-foreign status is the Bank does not have permission to carry out foreign exchange transactions as a bank so it can not carry out transactions such as Bank denisa.

c. Views of how to determine the price

1. Conventional banks are based on the principle of

In the for-profit and pricing to its customers, the Bank based on the principle of using two conventional methods, namely:

1.1. Interest as set selling prices, both for deposit products such as checking, savings and time deposits.

1.2. For other bank services using conventional banks or apply a variety of costs in nominal or percentage of costs such as administration costs Provesi, rents, fees, and other expenses biay.

2. Bank based on Shariah principles

Pricing or profit for the bank based on Islamic principles are as follows:

2.1. Financing for results based on those principles (mudaraba)

2.2. Based on the principle of equity financing (musharakah)

2.3. The principle of buying and selling goods to make a profit (murabaha)

2.4. Lease financing of capital goods based on pure without selection (ijara)

2.5. With the choice of transfer of ownership of the leased goods by the Bank from the other party (ijara wa iqtina).