ROUTINE TASK ECONOMIC ENGLISH

About Banking
Arranged to fulfill the tasks of the Economic English course

Supporting lecturer : Andri Zainal,M.Si,ph.D. Ak,CA / Choms Gary GT Sibarani,S.Pd,M.Si

Arranged By :

AHDA CHAIRUNNISA 7183240031

MUHAMMAD FARHAN RAMADHAN 7183240028

STEFFANI T.M SIGALINGGING 7183540002

FACULTY OF ECONOMICS

ECONOMICS STUDY PROGRAM

2019
 PREFACE

Thank you we pray to the Almighty God who has always bestowed His mercy and grace, so

that the writer can complete the routine task of the Economic English course group.

And as a writer, realize that there are still many mistakes and disadvantages that make this

paper. The author only tries as much as possible with the ability of the author.

This paper was made to fulfill the tasks of the Economic English Course. By completing this

paper, the authors hope that this imperfect paper can provide many benefits that we can take.

Medan, 18 March 2019

Writer

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 TABLE OF CONTENTS

PREFACE.....................................................................................................................1

TABLE OF CONTENTS..............................................................................................2

CHAPTER I INTRODUCTION................................................................................3

1.1 Background.............................................................................................................3

1.2 Formulation of the problem.....................................................................................3

1.3 Purpose of The Paper..............................................................................................3

CHAPTER II LITERATURE OF STUDY................................................................4

2.1 Literature of Study..................................................................................................4

CHAPTER III THEORY AND DISCUSSION.........................................................5

3.1 What is the Bank?...................................................................................................5

3.2 Types of Bank.........................................................................................................5

3.3 Bank Function.........................................................................................................6

3.4 Purpose of Bank......................................................................................................7

3.5 Bank Benefit............................................................................................................7

3.6 Bank’s Duties..........................................................................................................7

CHAPTER IV CLOSING...........................................................................................8

4.1 Conclusion .............................................................................................................8

BIBLIOGRAPHY.......................................................................................................9

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 CHAPTER I
INTRODUCTION

1.1 Background of The Paper

In general, the Bank is known as a financial institution whose main activities are receiving
deposits, demand deposits, savings and deposits. Then the Bank is also known as a place to
borrow money (credit) for people who need it. Besides that banks are also known to exchange
money, or accept all forms of payments such as electricity, telephone, water, tax, tuition and
so on.
Banks are financial institutions whose main business is to raise funds from the public and
redistribute the funds to the community and provide services in the traffic of payments and
circulation of money. From this understanding it can be concluded that there are three main
functions of the Bank, namely:
- Banks as institutions that collect funds from the public in the form of deposits.
- Banks as institutions that channel funds to the public in the form of credit and other forms
- Banks as institutions that facilitate trade transactions and money regulations.
The compiler takes the theme of money papers, banks and money printing because it is
interesting to learn especially in the economic field that will not be separated from the term.

1.2 Formulation of The Problem

1. What is a bank?
2. What is specify the type and function of the bank
3. What is specify the purpose, benefits and duties of the bank

1.3 Purpose of The Paper

1. to find out the definition of a bank
2. to find out the type and function of the bank
3. to find out the purpose, benefits and duties of the bank

CHAPTER II
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 LITERATURE OF STUDY

2.1 Literature of Study

a. According to Thomas Mayer, James D. Duesenberry and Z. Aliber

Banks are financial institutions that are very important for us, create some money and
have various other activities.

b. According to F.E. Perry, a bank is a business entity that deals with money, accepts
deposits (deposits) from customers, provides funds for each withdrawal, collects checks
on the orders of customers, gives credit and or implements excess deposits until needed
for repayment.

c. According to Kasmir (2008: 2)

argues that "Banks are financial institutions whose activities collect funds from the public
in the form of deposits then channel back to the community, and provide other bank
services".

d. According to Dendawijaya "Banks are a business entity whose main task is financial
intermediary institutions that channel funds from parties who are over-funded at a
specified time".

CHAPTER III

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 THEORY OF DISCUSION

3.1 What is Bank?

The Bank is a financial business institution whose job is to collect and channel funds
to the community and provide services related to other finances as a profit and help the
community improve living standards in general.
According to Republic of Indonesia Law No. 10 of 1998 dated November 10, 1998
concerning banking, it can be concluded that the banking business includes three activities,
namely collecting funds, channeling funds, and providing other bank services. Activities to
collect and channel funds are the main activities of the bank while providing other bank
services are only supporting activities. The activity of raising funds, in the form of collecting
funds from the public in the form of deposits, savings, and deposits. Usually while given
attractive services such as flowers and gifts as stimuli for the community. Activities to
channel funds, in the form of lending to the community. While other banking services are
provided to support the smooth running of the main activities.

3.2 Types of Banks:

a. In terms of its function

- Commercial banks
Commercial Banks are banks that carry out business activities in a conventional manner and /
or based on sharia principles which in their activities provide services in payment traffic. In
addition, the Commercial Bank is also called a Foreign Exchange Bank.

- People's Credit Bank (BPR)

Rural Bank (BPR) is a bank that conducts business activities conventionally or based on
sharia principles which in its activities do not provide services in payment traffic. In addition,
the Rural Bank (BPR) is also referred to as a non-foreign exchange bank.

b. Seen in terms of ownership

- Government-Owned Bank
Where both the deed of establishment and capital are owned by the government so that all the
profits of this bank are also owned by the government. The contents of government-owned
banks include:
• Bank Negara Indonesia 46 (BNI)
• Bank Rakyat Indonesia (BRI)
• State Savings Bank (BTN)

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- National Private Owned Bank
This type of bank is wholly or partly owned by the national private sector and its founding
deed was also established by the private sector, as well as the provision of profits for private
profits as well.

Examples of national private banks include:

• Bank Muamalat
• Bank Central Asia
• Bank Bumi Putra
• Bank Danamon

- Bank Owned by Cooperatives

Ownership of bank shares is owned by a cooperative company. An example is the Indonesian
Cooperative Commercial Bank.

- Foreign Owned Banks

This type of bank is a branch of a bank that is abroad, both foreign and private owned by the
government. Obviously the ownership is also owned by foreign parties.
Examples of Foreign Owned Banks include:
• Deutsche Bank
• Bank of America
• Bank of Tokyo

c. Viewed from the Status Side

- Foreign Exchange Bank
It is a bank that can carry out overseas transactions or related to foreign currencies as a
whole, such as overseas transfers, overseas inclusion, travelers checks, opening and payment
of letters of credit and other transactions. The requirements to become a foreign exchange
bank are determined by Bank Indonesia.

- Non-Foreign Exchange Banks

Is a bank that does not yet have permission to carry out transactions as a foreign exchange
bank. So non-foreign exchange banks are the opposite of foreign exchange banks, where
transactions are carried out within national borders.

3.3 Bank Functions:

The Bank's function is broadly as a government tool to maintain monetary and

financial economic stability.
The Bank's functions are narrow, namely as a means of withdrawal of currency and demand
deposits from the public and channeling it to the public.

The main bank functions are 3, namely:

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1. The bank serves as a tool to collect and channel funds to the public.
2. The function of banks is to mobilize funds for the economic development of a country, by
raising funds from the public to invest in the development of the country.
3. The bank functions as an institution that provides services to the community, in the form of
banking services to the community so that the community feels comfortable and safe in
storing the funds.

3.4 The purpose of the bank

In general, the aim of Indonesian banking is to help implement national development
in order to achieve equity, economic growth, and increase public welfare.
Indonesian banking aims to support the implementation of national development in
order to increase equity, economic growth and national stability in the direction of increasing
the mass of the people.

3.5. Banking benefits:

- As an investment model
- As protecting value
- Price information
- Speculative functions
- Production management functions run well and efficiently

3.6 Bank's duties

a. Commercial banks
 Distributing credit to the public, especially weak economic entrepreneurs and small
entrepreneurs
 Assessing the eligibility of business feasibility
 Distributing part of foreign currency loans to facilitate and finance non-oil and gas
export activities.
b. Bank Indonesia
- Have the right to issue banknotes or metals
- Money issued by Indonesian banks as a legal payment instrument
- Determine the amount of money in circulation
- Announce new forms of money to the community
- Money issued is free of stamp duty
- Controlling the amount of foreign money in circulation

CHAPTER IV

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 CLOSING

4.1 Conclusion
According to Republic of Indonesia Law No. 10 of 1998 dated November 10, 1998
concerning banking, it can be concluded that the banking business includes three activities,
namely collecting funds, channeling funds, and providing other bank services. Activities to
collect and channel funds are the main activities of the bank while providing other bank
services are only supporting activities. The activity of raising funds, in the form of collecting
funds from the public in the form of deposits, savings, and deposits. Usually while given
attractive services such as flowers and gifts as stimuli for the community. Activities to
channel funds, in the form of lending to the community. While other banking services are
provided to support the smooth running of the main activities.

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 BIBLIOGRAPHY

file:///D:/File%20Nisa/EconomicEnglish.pdf.pdf

http://www.informasiahli.com/2015/09/pengertian-bank-fungsi-peran-dan-tugasnya.html

https://makalahvall.blogspot.com/2013/05/makalah-pengertian-fungsi-bank.html

https://infosiana.net/makalah-perbankan/