English Papers of Accounting

By:

Name : Maria Stefani Leto Mau

NIM : 2023755719

Semester / Class : 2 / B

Department: Public Sector Accounting

Subject : English Accounting

 Foreword

Praise and thanks to God Almighty for His grace and guidance, the author can complete
a paper entitled "Retail Banking and Retail Banking" on time.

Papers prepared to fulfill the mid-semester test assignments for Accounting English. In
addition, this paper aims to add insight into the Bank for readers as well as writers.

The author would like to thank Ms. Rosdiana Mata, S.S., M.Pd as a lecturer in the
English Accounting course. Thanks are also extended to all those who assisted in the
completion of this paper.

The author realizes that this paper is far from perfect. Therefore, suggestions and
constructive criticism are expected for the perfection of this paper.
 CHAPTER 1

PRELIMINARY

1.1. Background

Retail is a business unit that is at the very end of the supply chain and sells goods
directly to consumers. In Indonesia, the retail business has a potential market. According to
World Bank data, the per capita income of the population reaches $ 3,557.3 starting to approach
the middle to upper economic category. The large population of Indonesia reaching 246,864,191
people is also an opportunity factor that should be reckoned with in the retail business.
Pudjianto (2013) states that the number of traditional retail business players is still greater when
compared to modern retailers. For every hundred traditional retail stores there is only one
modern retail store. There are still many players in traditional retail business, but if they are not
addressed and supported, then traditional retail will be unable to compete with modern retail.
Seeing this pretty good opportunity, many modern retailers are starting to open their retail
branches. In Indonesia, food-oriented modern retail is generally divided into three retail
business formats, namely hypermarkets, supermarkets and convenience stores. The difference
between the three retail formats is the size of the store and the SKU it owns. The goods to be
sold are the main assets that are valuable in the smooth running of the retail business. Goods
owned by retailers are the main income of retailers, which is obtained from the profit between
the purchase price and the selling price to the consumer. Any disruption to the business assets to
be sold can disrupt revenue and lose potential sales to customers.

This modern retail business requires good performance so that the business runs smoothly and
does not lead the company to bankruptcy. Levy Weitz (2009: 186) states that, many factors
contribute to measuring the performance of retailers as a whole. Each level of the organization
has a type of measurement which is divided into three aspects, namely output, input and
productivity. The input measurement type is resources or money allocated by retailers to
achieve output. Output measures assess the results of retail investment decisions. The
measurement of productivity determines how effectively a retailer uses its resources and what
the retailer gets through the investment that has been made. Loss of retail inventory, also called
shrinkage, can be caused by several factors, namely internal theft / employee theft, distributor
error, shoplifting, 3 system failures or administrative errors. Of the four factors that cause
shrinkage, what needs to be paid attention is internal theft and shoplifting because they can
cause huge losses to retailers. As time goes by, surveys related to shrinkage continue to be
carried out and have more in-depth results that are interesting to watch. The latest reliable
survey results and a reference conducted by Hayes International. Jack L. Hayes International,
Inc. is a consultant in asset protection and security that is trusted and recognized by many
parties regarding the results of business securities surveys he has conducted for 47% 32% 15%
6% Source Shrinkage Employee theft Shoplifting Administrative and paperwork vendor error 4
years. The 25th annual report on the retail theft survey published in June 2013 stated that there
was an increase in theft by shoplifters and employee theft. Of the 23 large retail companies with
a total of 18,900 stores and sales of $ 598 billion in 2012, 1,074,593 shoplifters and 71,095
employee theft were found. And overall there is an increase of 7.3% from the 24th annual
survey conducted by Hayes International. Employee theft still causes losses even though the
number of perpetrators is far less than the shoppers. The survey results showed that employee
theft cases were less than shoplifting but the average loss of each case was much higher than
employee theft than shoplifting. It should be noted that the number of actors increases every
year so that losses will continue to increase if there are no anticipatory steps from the retailer.
As a real example of what happened in Indonesia, Merdeka.com in its articles published in
online media (http://www.merdeka.com/peristiwa/dalangi-pencurian-karyawan-alfamidi-
dibekuk-police.html accessed January 17, 2014) January 25, 2013 raised a case of internal theft
that occurred at Alfamidi Ciruas Serang Regency. The internal theft case caused the 5 retail
shop to suffer a loss in the form of four computers, cash, a number of items, and money in the
charity box. After being investigated by the authorities, it turned out that the perpetrator was an
employee who was on duty that day. The internal theft incident was something other employees
who were on duty did not predict because the perpetrator was a colleague of the employee, so
there was no mutual suspicion between employees. Tonglet and Bamfield, 1997; Bamfield,
2004; Hayes, 2005 in Alstete, 2006 states, employee theft, depreciation, and employee theft are
pervasive problems in today's business and the main source of loss for retailers. Although the
number of perpetrators of employee theft was lower, the average case value was enormous,
reaching $ 715.24 per case. Seeing that the retail business is a labor-intensive business that
involves many workers who have thoughts and intentions that retailers cannot control, it is
possible that employee theft will increase. Employees are those who know the systems and
weaknesses of the company's systems because they are associated with the company's systems
every day.

1.2. FORMULATION OF THE PROBLEM

Based on the background that has been explained, the problem formulations in this paper are:

1. What is a Retail Bank?

2. What are the forms of services provided by retail banks?

3. What is the impact of a Retail Bank on the economy?

1.3 PURPOSE OF DISCUSSION

The objectives of this paper are:

1. To find out the factors that cause internal theft.

2. To know the strategy of controlling internal theft.

 CHAPTER 2

DISCUSSION

2.1. Definition of a Retail Banks

Retail banks are banks that provide financial services to consumers as individuals, not
businesses. Retail banking is a way for individual consumers to manage their money, have
access to credit, and deposit their money in a safe manner.

Services offered by retail banks include checking and savings accounts, mortgages, personal
loans, credit cards, and certificates of deposit. Retail banking is also a bank that specializes in
bank service products offered to individual customers and small-scale business entities /
companies.

A bank is said to conduct a retail bank if it deals with and transacts directly with consumers, and
not through other institutions or other banks. This term is used to distinguish retail banking
services from other institutional services such as investment banking, commercial banking, or
wholesale banking

The term retail banking service can also be used for banks that transact directly with consumers,
which can also be referred to as personal banking services.

Some of the priorities of banks engaged in retail banks are more focused on several things, such
as building branches so they can reach more consumers while continuing to improve services at
each of these branches.

Each branch office not only acts as an extension, but also plays a role in every activity related to
customer experience and satisfaction.

They also explore many options to create a personal and comfortable banking experience for
their customers, starting from ATM, mobile banking, etc.
2.2 Services provided by Retail Banks

Retail banks will usually provide three forms of services, namely credit, deposit, and financial
management. These three things are components of a commercial bank. In addition, here are
other services:

1. A retail bank will offer credit to customers to pay for houses, cars, and various furniture.

2. A retail bank will provide a safe place for people to deposit money. Deposit accounts,
certificates of deposit, and various other financial products offer a good rate of return compared
to depositing their money elsewhere.

3. Retail banks allow customers to manage their own money by checking accounts and debit
cards. That means, retail banks don't need to do all kinds of transactions offline but online,
making the bank look more comfortable.

In retail bank operations, the maximum loan amount given is around IDR 20,000,000 although
this figure is not fixed. As for examples of retail banks in Indonesia, namely Bank Negara
Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Tabungan Negara (BTN)
and so on.

2.3 Impact of retail banks on the economy

The Role of Banks in the Economy of a Country

It is hoped that the development of the financial sector, especially changes in the composition or
structure of banking in Indonesia, can bring positive changes to the national economy. Why?
This is because financial institutions, especially banks, have a very important role in the
movement of the Indonesian economy. When the state is in the process of economic recovery,
banks generally have not been able to optimally carry out their main function as an international
financial intermediary which describes the ratio of the ratio of the amount of credit extended to
third parties (LDR / Loan to Deposit Ratio). The intermediary role of banking institutions is
very influential on the economic growth of a country. When there is a decrease in the amount of
credit extended due to prudence on the part of the bank, there will indirectly be a slowdown in
economic growth in the country concerned.

Now, for more details about the role of banking institutions, especially in terms of a country's
economic growth, the following will briefly describe the duties and functions of banks in
general. There are several main duties of banking institutions. First, the bank is in charge of
extending credit to business institutions or individuals who need it. The purpose of lending is
for productive activities. Credit itself is divided into three types, namely long-term credit,
medium-term credit and short-term credit. Second, banks have a duty to withdraw money from
the public. This means that people can save their money in the form of time deposits, current
accounts, or checking accounts, as well as tabanas. Third, distribute services in the field of
traffic circulation and payment of money. These services include the service of issuing checks,
selling and buying money orders, currency exchange, and many others. Fourth, the bank is in
charge of providing bank guarantees and also renting out a place to store valuables.

Meanwhile, there are two types of banking roles, namely the domestic role and the foreign role.
The domestic role means that the bank has a role to fulfill the needs of the domestic economy
such as financial administration activities, holding money, using money, exchanging and trading
money, monitoring money, crediting, and sending money, while the role of banking for abroad
includes matters- matters relating to foreign exchange flows, trade relations, and monetary
relations between countries.
 CHAPTER 3

CLOSING

3.1 Conclusion

Retail banks are banking that provide financial services to consumers as individuals, not
businesses. Services offered by retail banks include checking and savings accounts, mortgages,
personal loans, credit cards, and certificates of deposit. Services provided by retail banks
include offering credit, providing a safe place for people to deposit money, and allowing their
own money by checking accounts and debit cards.
 Bibliography

https://www.wartaekonomi.co.id

http://direktoritraining.com
 Questions from Mother via google classroom :
1. Mention the type of retail banking, investment bank and commercial banking in
Indonesia and also their services that they offer customer.
2. What is your favorite sevice from bank? Why?
3. What do you think about banking in the future?
4. Describe the advantages and disadvantages of using internet banking, mobile banking
and go directly to bank for customer ?
Answer :
1. types of retail banks, namely PT Bank Central Asia (BCA), PT. Bank Tbungan Negara
(PERSERO), PT. Bank Mandiri and others.
Services offered by retail banks are transfers, learning, safe deposit boxes, credit cards,
bank guarantees and others
2. My favorite bank is Bank Rakyat Indonesia (BRI). Why? yes because in my opinion the
service provided is also good and the security of my money is guaranteed safe. BRI also
offers services in the form of ATMs, credit cards, mobile banking and others.
3. My opinion in the future is that security will be maintained if needed more than now
and there are breakthroughs or programs for future services.
4. The advantages of using internet banking and mobile banking for customers are that it
is more practical and cheaper without having to queue at the bank office. As for the
drawbacks, namely the possibility of burglary to customer accounts and also limited
internet access.
 Questions from other groups for the group namely us group 1 :
1. What is an example of a retail bank in Indonesia ? ( from Linda Pah group 3)
2. How is the impact of retail banking on the economy ? ( from Dewi Hartanti
group 5)
3. How to determine duties and responsibilities in the retail banking sector ? (from
Ria Djaha group 4)
4. What is different between retail banking and investment banking ? and give me
example retail banking in Indonesian (from Linda Tukan group 2)
5. What is the retail banking? And explain the impact of retail banking on banks in
Indonesia ? (from Rina Seubelan group 2?
 6. What forms of service are usually provided by retail banks? ( from Amal
Rahman group 2)
 Answers given from group 1:
1. The examples of retail banks in Indonesia (JK: BBN) (BNI), Bank Rakyat
Indonesia (JK :BBRI) (BRI). [answer from Kristin Mooy to Linda Pah ]
2. How he economy and you retail banks create the supply of money in the
economy. As you can imagine, this is a powerful tool for economic expansion.
To ensure proper conduct, the fed controls this as well. It sets the interst rate
banks use to lend fed founds to each other. That’s called the fed found rate.
That’s the most important interest rate in the world. Why? Banks set all other
interest rates against it. If the fed founds rate moves higer, so do all other rates.
Most retail banks sell their mortgages to large banks in the secondary market.
They retain their large deposits. As a result, they were spared from the worst of
the 2007 banking crisis. [answer from Kristin Mooy to Dewi Hartanti]

3. Retail banking, corporate banking, investment banking and bank operational

support are different business units, so the duties and responsibilities if each
section are different.
Discussion
- Retal banking : seving indivuals and small businesses.
Retail banking is a specialization of its business in bank service products
offered, both to individual customers and to small-scale business entities
(retail banking). Retail banking or consumer banking is a bank service
activity for small amd medium sized customers. ATM s an xample of a
bank service to small and medium scale customers. According to bank
Indonesia, a bank that serves small and medium- sized (SME) loans up to
Rp. 50 billion.
Consists of :
a. Branch operational division
b. Divici retail funds and service
c. Retail credit division
[answer from Lodya Ewang to Ria Djaha ]
4. Retail banks ae primarily focused on taking deposits and providing loans to
individual customers as well as offering other additional services, such as safes
and payment services. Investment banks generate money primarily trough fee
income that is negotiated as part of capital market transactions. Yhe main
performance drivers for investment banks are market competition for fee
income, presence and reputation in the capital maket and transaction frequency,
size and scale.
The example of retail banks in Indonesia are Bank Negara In Indonesia (JK:
BBNI) (BNI), Bank Rakyat Indonesia (JK :BBRI) (BRI), Bank Mandiri(JK:
BMRI), Bank Tabungan Negara (JK: BBTN) (BTN) and others
[answer from Alfa Nale to Linda Tukan ]

5. Bank retail is a bank that specializes in bank service products offered to both
individual customers and small-scale business entities. Retail banks will use
deposit funds as funds for debitors. They willthen charge a higher rate of
interest on the money lent than the percentage that has to be paid on deposits. In
addition, considering that Indonesia is still at the stage of a developing country,
thr emergence of small scale companies is more than large companies. This is
of course very profitable for retail banks because their target is individuals and
small-scale companies. When these companies put their money in a retail Bank,
the greater the funds that can be used as loan funds to borrowers. Therefore,
individuals who wish to open a business but do not yet have the capital can
borrow the money from a retail bank with greater opportunities. In this
situation, the Retail Bank has succeeded in moving the economic situation in
society. [answer from Stefani Leto Mau to Rina Seubelan ]
6. Farms of service provided by retail banks include savings, KPR, unsecured
loans,debit cards and credit cards
[answer from Alfa Nale to Amal Rahman ]