The Notion of a Bank

The Bank is one of the important role of financial institutions in the economy of society. Many opinions about the notion of a bank which is basically not different from each other, although there are differences only appear in the task or business of the Bank. Prof. G.M. Verryn Stuart in his book "The Bank Politics" explains that:
"The Bank is a body that aims to satisfy the credit requirement, either by the means of payment alone or with money obtained from another person, or by way of circulating the new exchanger equipment in the form of demand deposits".

According to A. Abdurrachman in Encyclopedia of Financial economics and trade: "The bank is a type of financial institutions that perform various services, such as providing loans, acting as a storage place valuables, business finance companies, and others."
In the Law No. 14 of 1967 article 1 of the main points of Banking, "Bank is a financial institution that provides credit and basic business services in payment traffic and circulation of money".
Duties and functions of the Bank.
The task of the Bank by Sinungan as follows:
1. Giving credit to the person or business entity in need of money.
In this case the loan is aimed at production activities not for consumptive purposes. Besides the bank that is lending assistance to entrepreneurs, the bank also participated in the company's capital, by road to buy company stock in need of capital.
2. Withdraw money from the public.
Communities can save money that is not or has not been used, in the form of bank accounts, demand deposits, time deposits, Tabanas, Taska and others.
3. Providing services in the field of payment traffic and circulation of money.
These services can be shaped expenditure checks, money transfer, buy and sell money orders, and as foreign exchange.