Banks can be classified according to their activities, legal form, ownership, and organizational.
1. According to bank activity.
According to its activities, the bank consists of a central bank, commercial banks and rural banks.
a. Central Bank.
The central bank which is an independent institution, free from government interference and other parties, except for matters expressly provided for in the laws in each country.
Duties and obligations of the Central Bank.
* Establish and implement monetary policy.
* Organize and maintain the smooth payment system.
* Manage and supervise banks.
* As a provider of last resort for commercial banks funds, in the form of liquidity assistance
In performing its duties, the Central Bank led by the Board of Governors consisting of a governor, a senior deputy governor, and at least four people or as many as seven deputy governors.
b. Commercial Banks.
Commercial banks are banks that can raise funds from the public in form of demand deposits, time deposits and savings, providing loans and payment traffic services in the financial sector to the public,
c. Rural Bank.
Rural banks are banks that accept deposits from the public only in the form of time deposits, savings, and lending to the public.
2. According to Legal Forms Bank.
According to the legal form, consisting of banks in the form of limited liability company, cooperative, firm, corporation or individual.
3. According to bank ownership.
Under its ownership, the bank can be grouped as follows.
a. State-owned banks
State-owned bank is the bank that its capital resources derived from state assets set aside to establish the bank.
b. Private-owned banks
Owner of private banks are banks that source their capital from private national or foreign private.
c. Local Government-owned banks
Local government-owned banks are government-owned development banks.
4. According Bank to organization.
To organization, the bank consists of unit banking, branch banking and banking correspondence.
* Unit banking is a bank that has only one organization and does not have branches in other areas.
* Branch banking is a bank that has branches in other areas.
* Correspondence banking is a bank which conducts inspection of import and export documents or main activity is outside the country.
BANKING PRODUCTS
Bank purchase funds from the public (passive credit), then sell the credits to the public (on credit). In addition, the bank also provides financial services to communities in other financial areas.
1. Passive credit
a. Giro.
Demand deposits are deposits that can be used as a means of payment and withdrawal can only be done at any time by using a check or demand deposit (checking = demand deposits).
b. Time Deposits.
Time deposits are deposits that withdrawal can only be done within a certain period, eg 1 month, 3 months, 6 months, or 12 months.
c. Certificates of Deposit.
Certificates of deposit are time deposits with evidence of storage can be traded.
d. Savings.
Savings deposits withdrawal is not tied to a specific time period.
e. Deposit on Call.
Deposits on call is a permanent fund in the bank for depositors do not need it. If it's going to take deposits, depositors must more first notify the bank.
f. Deposits Automatic Roll Over.
Automatic rollover deposits are deposits that have matured but have not been withdrawn by the depositor and the flowers directly calculated automatically.
2. Active credit.
a. Credit Account.
The bank provides loans to customers (clients) that can be taken in parts as needed. Newspaper accounts credit guarantees are securities, goods in the warehouse lenders, and delivery of goods to move or not move.
b. Credit Reimburs.
Reimburs credit (letter of credit) are loans given to customers (clients) on the purchase of some goods, and who pays the bank.
c. Credit acceptors.
Credit acceptors are loans given to customers by issuing money orders. Money orders can be traded.
d. Documentary Credit.
Documentary credit is a loan provided to customers, clients submit documents after shipment of goods that have been approved by the captain of the ship carrying the goods.
e. Loans with Collateral Securities.
Loans with collateral securities are loans given to customers to buy securities, and marketable securities at the same time it serves as collateral.
3. Banking services.
Principal business is buying banks and public funds then available to the public.
a. Sending Money (Transfer)
Remittances between regions and between countries carried out by the bank at the request of customers.
b. Do discount.
Bank guarantees the securities being traded by the public.
c. Implement collection.
Banks collect notes (bonds) on behalf of its clients and other parties.
d. Provide Bank Guarantee.
Bank guarantees its clients in executing an agreement or transaction. If the customer does not fulfill its obligations under the agreement, the bank will pay for losses incurred.
e. Renting of Storage of Goods or Securities.
Bank to its clients rent storage of valuables. for example, marketable securities owned by customers can be kept in crates (safe deposit) provided by the bank.
f. Ensuring Placement Securities.
Bank guarantee the availability of funds for companies that sell shares to the public, although the stock is not sold on stock exchanges.
g. Credit Card Issuing.
Banks issuing credit cards to customers who make purchases at a department store or the payment of services to various agencies.
h. Travel Cheque issued.
Bank provides travelers checks to their customers, to facilitate these customers finance transactions during the trip.
i. Buying or Selling Foreign Currencies.
Bank conducts foreign exchange currency into domestic currency into foreign currency, foreign currency and exchange with other foreign currencies.
j. Provides ATM.
Bank provides ATM to facilitate customers to take the money without having to come and queue at the bank. ATM machines are often found in shopping.
( Let's To The Bank )
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