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INTRODUCTION TO
BANKING
Course 1 Yudy Yunardy S.E., M.M.
WHO AM I ?
Fifteen years of Banking experience, six yearsโ€™
experience in Trade Finance Operations
background with Unsecured Loan experience,
equipped with another seven yearsโ€™ experience in
Management Information Analyst and Dashboard
Reporting. Vastly experienced in Bank Indonesia
reporting (LBU, SID, LBBU, BMPK etc.)
EMPLOYMENT SUMMARY
2014 Present Indonesia Banking School
2013 2014 Deutschebank AG
2011 2012 Misys Plc
2010 2011 DBS Indonesia
2010 2010 ANZ Bank
2005 2010 RBS Bank
2004 2005 Vendor at Bank Mandiri, BCA and Circle K
1999 2004 HSBC Bank
1998 1999 MetLife Insurance
1997 1998 Demographic Institution FEUI
1996 1997 Private Investment Manager
RULES
1.Disable your comm. device
2.Presence 80% minimum
3.Time alloc. 12.35 โ€“ 15.05
TEXTBOOK
Siamat, Dahlan
(2005), Bank
dan Lembaga
Keuangan
GRADING EVALUATION
1. Quiz / exercise 25%
2. Assignments 15%
3. Midterm 25%
4. Final 35%
MONEY, ORIGINS, FUNCTIONS
AND ROLES
Section 1
AT THE BEGINNINGโ€ฆ
Self sufficient
AND WE EVOLVEโ€ฆ
Barter
DISADVANTAGES OF BARTER
1.Itโ€™s hard to find the person
2.With the same needs
3.Set the agreed value
4.Carry and store goods
5.No common denomination
COMMON DENOMINATION
1.Needed
2.Wanted
3.Accepted
4.Ready to be traded
COMMON DENOMINATION
DISADVANTAGESโ€ฆ
1.Not durable
2.Impractical
3.Inconvenience
4.Volatile
PRECIOUS METAL
1.Durable
2.High stable value
3.Portable
4.Convenience
5.Practical
6.Limited
7.Likable
COINS
DISADVANTAGES OF COINSโ€ฆ
1.Needs big storage
2.Impractical, heavy
3.Difficult for big amount
4.Canโ€™t cope with demand
5.Too limited
NOW COMESโ€ฆPAPER MONEY!
AND THENโ€ฆBILLS!
MONEY, FUNCTION AND ITS ROLE IN
ECONOMY
Financial systems
1.The most important creation
2.Transfer funds from borrowers
to lenders
3.Set interest rate and amount
of loanable funds
FUNCTION OF FINANCIAL SYSTEMS
1.Savings
2.Wealth
3.Liquidity
4.Credit
5.Payment
6.Risk
7.Policy
THE ORIGINS OF BANK Section 2
BANCO bangku
BANCA ROTTO bankrupt
1. EARLY STAGE embryonal
2. SAVINGS AND LOAN Igibi bank
3. PAYMENT SYSTEM Money order
4. GOLDSMITH BANK Cheque
EARLY BANKS IN INDONESIA De javasche bank
EARLY INDONESIAN MONEY De javasche bank
EARLY BANKS IN INDONESIA De Algemenevolks Crediet
Bank
EARLY BANKS IN INDONESIA Nederlands Handels
Maatschappij
EARLY BANKS IN INDONESIA De Escompto Bank NV
EARLY BANKS IN INDONESIA Bank Nasional indonesia
BANK, FUNCTIONS AND ROLES Section 3
1.Collector of funds
a) Itself
b) Third party
c) Other financial institutions
IN GENERAL
2. Channeling funds
3. Payment services
IN GENERAL
1. Agent of trust
2. Agent of development
3. Agent of services
FUNCTIONS OF BANK
1. Asset transmutation
2. Transaction
3. Liquidity
4. Efficiency
ROLES OF BANK
1. Monetary stability
2. Financial stability
ROLES OF CENTRAL BANK
1. Interest rate
2. Open market operations
MONETARY STABILITY
1. Supervision and regulations
2. Regulator of payment systems
3. Early detection and avoidance
of potential shock
4. Lender of the last resort
FINANCIAL STABILITY
TYPES OF BANK IN INDONESIA
Underlying theory
UU No. 14 th. 1967
UU No. 7 th. 1992
UU No. 10 th. 1998
1. Bank Umum, adlh bank yg dpt
memberikan jasa-jasa dlm lalu
lintas pembayaran
2. BPR, adlh bank yg menerima
simpanan dlm bentuk deposito
berjangka atau yg sejenis
UU NO. 7 TH. 1992
Commercial Bank Status
1.Foreign exchange
2.Non-foreign exchange
UU NO. 7 TH. 1992
Commercial Bank Office Type
1. Head Office
2. Branch Office
3. Subbranch Office
4. Cash Services Office
5. Representative Office
6. Regional Office
UU NO. 7 TH. 1992
Ownership of bank
1. Government
2. Private
3. Local Government
4. Foreign
5. Joint Venture
UU NO. 7 TH. 1998
Commercial Bank Pricing
1.Sharia
2.Non Sharia
UU NO. 7 TH. 1998
Legal form of Commercial Bank
1. Perseroan Terbatas (PT)
2. Koperasi
3. Perusahaan Daerah
UU NO. 10 TH. 1998
WHAT HAVE WEโ€™VE LEARNED SO FAR
QUESTIONS?
1. If there is a collapsing bank, why
government fight so hard to save it?
2. Why government needs to change
regulations from 1967 to 1992 to
1998, what is the major reason
between each change?
THANK YOU See you next week

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Introduction to banking