only for keeping in touch with the banks customers. But also at the macro level is to create a sound banking system and efficient. Which
in turn helps the development of the national economic development of a country.
Regarding banking functions we can refer to Article 3 of the Banking Act UU Perbankan which is the bank function as collector and
distributor of public funds. This provision reflected the function of banks as intermediaries parties with a surplus of funds shortage parties and lacks of
funds. Understanding the function of banks is very closely related to the purpose of the banking institution itself. In Article 4 of the Banking Act
says that Indonesian Banking aims to implement national development in order to improve equity, economic growth and national stability towards
improving the welfare of the people.
2.1.4.2. The Types of Businesses and Banks
Banking institutions in Indonesia are grouped into two types of banking institutions. It shows on in Article 5 of the Banking Act is type
Commercial Banks and Rural Banks type. a.
Commercial Bank Commercial bank is a bank conducting conventional business and or
based on sharia principles and provides services in payment traffic. In addition, commercial banks can specialize to carry out certain activities
such as long-term financing activities, activities for the Growth of
cooperatives, the Growth of low-income entrepreneurssmall business owners, non-oil export Growth, and Growth of housing construction.
b. Rural Bank BPR
Rural Bank is a bank conducting business in a conventional or sharia in their actions do not provide services in payment traffic.
Meanwhile, bank also can be divided into their ownership licence status. Ownership seen from the certificate of incorporation and control of
shares owned by the bank. Types of banks by ownership license is as follows Siamat, 2005:
1. The Government-Owned Banks Limited Bank
State-owned bank is a bank which certificate of incorporation or capital, owned by the government so that the overall profit of banks owned by
the government. The banks that belong to the state-owned banks, among others:
a. Bank Negara Indonesia BNI
b. Bank Rakyat Indonesia BRI
c. Bank Tabungan Negara BTN
d. Bank Mandiri
2. Private Commercial Bank
Domestic private-owned bank is a bank that is majority-owned by private national and established by private deed, as well as privately
owned profit-sharing WNI and or incorporated in Indonesia. Subdivided into Foreign Exchange and Non-Exchange bank. According
to SPI Banking published by BI, untuil the end of 2013 the amount of foreign exchange private bank total of 36 banks, while the Non-Foreign
Exchange private bank many as 30 banks. 3. Banks Regional Government BPD
Ownership shares of local government-owned banks, as well as a good deed and capital gains owned by local governments. The number of
BPD was 26 stable banks. 4. Foreign Banks
Foreign banks are branches of overseas banks there either private foreign and foreign governments, obviously owned by a foreign party.
The number of foreign banks in until 2013 consists of 10 banks. 5.
Joint Venture Bank Joint venture bank is a proprietary blend of commercial bank co-
founded by one or more commercial banks domiciled in Indonesia and was established by citizens andor Indonesian legal entity wholly
owned by citizens, with one or more banks domiciled abroad. The number of Joint Venture banks fluctuated that is numbered 14 banks
until 2013.
2.1.4.3. Lisence Procedures For Establishing a Bank and Ownership of Banks
