MODUL 2

BANK DAN LEMBAGA KEUANGAN

History of Banking Development

Babylon 2000 BC
Greece 500 BC
Roman
Modern Banking Era 16th Century
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BANK DAN LEMBAGA KEUANGAN

Bank Function
 The main function
 Financial intermediary

Specific Function
 Agent of trust
 An institution whose foundation is trust.
 Agent of development
 Institutions that mobilize funds for economic development
 Agent of service
 Institutions that mobilize funds for economic development
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BANK DAN LEMBAGA KEUANGAN

Financial Institutions as Intermediaries

Bank

Bank Sentrak, Bank Umum,

Bank Perkreditan Rakyat, Bank
Unit Defisit Bahi Hasil
Unit
(Borrowers) Lembaga Keuangan Bukan Bank Surplus
(Lenders)

Lembaga Pembiayaan, Asuransi,

Dana Pensiun, Pegadaian, Pasar
Modal, Pasar Uang
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BANK DAN LEMBAGA KEUANGAN

The Role of Banks and Financial Institutions

 Asset transmutation
Transfer of funds from surplus units to deficit units
 Transaction
Providing ease of transactions for goods and services
 Liquidity
Providing alternative liquidity management
 Efficiency
Interaction of surplus units and deficit units efficiently
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BANK DAN LEMBAGA KEUANGAN

Intermediation and Supervision

 Incentive problem
 Monitoring delegation
 Monitoring delegation model