Commercial banks are banks that carry out business activities conventionally and or based on sharia principles, which in their activities provide services in payment traffic. In Act Number 10 of 1998 concerning Banking, banks are referred to as business entities which collect funds from the public in the form of deposits and distribute them to the public in the form of credit and or other forms in order to improve the standard of living of the community.
Duties and Functions of Commercial Banks
The task of commercial banks in general is to do two activities, namely:
- Collecting funds from the public or also called fundingand
- Channeling lendingfunds .
The functions of commercial banks are generally divided into three functions, namely:
- Agent of Trust
- Agent of Equity
- Agent of Development (Development Agency
Commercial Bank Business Activities
- Collecting funds from the public in the form of deposits in the form of demand deposits , time deposits, certificates of deposit , savings , and or other equivalent forms.
- Give credit.
- Issue a letter of acknowledgment of debt.
- Buy, sell, or guarantee at your own risk or for the benefit and at the behest of its customers
- Transfer money both for own interests and for the interests of customers.
- Receive payments from bills on securities and make calculations with third parties.
- Provide a place to store goods and securities.
- Carry out custodial activities for the interests of other parties based on a contract.
- Conducting factoring, credit card business and trusteeship activities.
