MANAGEMEN

T
BANK
FUNDING
Helmi S Said C1H017001
Tasya S Febriany C1H017030
DEFINITION

Bank Funding Source is the act of Bank to

provide financial resouce, usually in the
form of money, to finance a need,
program, and project.
MANAGEMENT 1 CAPITAL

OF BANK 2 DEPOSIT
FUNDING
BORROWINGS
SOURCE 3
 1
CAPITAL
 CAPITAL

PRIMARY SECONDAR
Y

Primary capital result from issuing common or preferred stock

Secondary capital results from issuing subordinated notes and bonds

 2
DEPOSIT
Current Deposits means The depositors
of such deposits can withdraw and
DEPOSIT
deposit money whenever they desire or
in other word at any time. Since banks
have to keep the deposited amount of CURRENT SAVIN
such accounts in cash always, they carry
either no interest or very low rate of G
interest. FIXED
Fixed Deposit means These are the
deposits which are deposited for a
definite period of time. These deposits
cannot be withdrawn before the maturity
date.

Saving Deposit means In such deposits,

money up to a certain limit can be
deposited and withdraw once or twice in
a week. On such deposits, the rate of
interest is very less. Their main objective
is to mobilize small savings
 3
BORROWINGS
 BORROWINGS

CENTRAL
BANK INTERNATIONAL
FINANCIAL
The Central Bank will provide
INTERBANK INSTITUTION
liquidity to the banks and
when their assets dry up.
These are provide by the
Banks extend loans to one international institution like,
another for a specified contract. International Monetary Fund
Such loans are made at the (IMF), World Bank.
interbank interest rate that
published from central bank
everyday. This loans, usually
have 6 tenors. Overnight, 1
week, 1 month, 3 months, 6
months, 12 months.
 1 PRIMARY RESERVE

MANAGEMENT 2 SECONDARY RESERVE

OF BANK
LOAN PORTOFOLIO (CREDIT)
FUNDING 3

ALLOCATION 4 PORTOFOLIO INVESTMENT

5 FIXED ASSETS
 Primary Reserve
1 The main priority in allocating funds is to place funds to fulfill the rules & condition from
correspondent bank. Primary reserves are the minimum amount of cash required to operate
a bank. In Indonesia, the rules & condition made by Bank Indonesia.

Secondary Reserve
2 Are bank assets invested in safe, short-term securities, including Treasury bills. Secondary
reserves are a supplemental measure of low-risk liquidity, Providing additional primary
reserve capital if needed. These reserves earn interest and can be useful in boosting a
bank's primary reserve total, if the bank got loan losses or a huge withdrawals.

Loan Portofolio (credit)

3 The third priority in allocating bank funds is lending. The logically thinking is after fulfilled the
primary reserve and secondary reserve. The bank can determine the amount of the credit
that could to be given.
 Investment Portofolio
4 The fouth priority in the allocation of bank funds is to allocate a certain amount of funds to a
portfolio investment. The allocation of bank funds into this category is the residual fund after
planting in the form of a loan (credit) that has met certain criteria or targets.
The factors that need to be considered in investing funds in the form of portfolio investment
are:
- Capital gain
- Maturity date
- Fee tax
- Diversification

Fixed Assets
5 The last allocation or investment of bank funds is investment in the form of fixed assets,
such as land purchases, construction of bank office buildings, bank operational equipment,
such as computers, online systems operation, vehicles, and other fixed assets.
SAVING ACCOUNT
Is an interest-bearing deposit account held at a bank
or other financial institution. Though these accounts
typically pay a modest interest rate, their safety and
reliability makes them a great option for parking
cash you want available for short-term needs.

account is ideal for building an emergency fund,

saving for a short-term goal like buying a car or
going on vacation.
HOW SAVINGS ACCOUNT WORK
Savings and other deposit accounts are an important bank source of funds to turn
around and lend to others. For this reason, we can make saving account at every
bank. The rate on a savings account is generally variable. The more competitive
the rate, the more fluctuation interest rate over time.

Some savings accounts will require a minimum balance in order to avoid monthly
fees, while others will have no minimum balance requirement. So it’s important to
know the rules of your account.

Whenever you want to move money in or out of your savings account, you can do
at :
- a branch or an ATM
- by electronic transfer to or from another account using the bank’s application
- transfers can usually be arranged by phone
ADVATAGES & DISADVANTAGES
ADVANTAGES DISADVANTAGES

The interest pays less than you can earn

Keeping your funds safe with earn interest
from certificates of deposit or investments

Allow to open more than one savings

Not good option for long-term savings or
account, if you want to keep track of your
investation
savings progress on multiple goals

Savings account will remain extremely Easy access can make withdrawals
liquid or easy to withdraw tempting
SAVING
what a person has left over when the cost of his or
her consumer expenditure is subtracted from the
amount of disposable income earned in a given
period of time. For those who are financially prudent,
the amount of money left over after personal
expenses have been met can be positive.
Savings can be used to increase income through
investing in different investment vehicles.
DEPOSIT
A deposit is a financial term that has multiple
definitions.On the one hand, a deposit is a
transaction involving a transfer of funds to another
party for safekeeping. On the other, a deposit also
refers to a portion of funds used as security or
collateral for the delivery of a good.
DIFFERENCES BETWEEN SAVING AND DEPOSIT

SAVING DEPOSIT

Low Interest High Interest

There is period of time that must be passed

Flexibility to take funds
to take funds

For daily or emergencies For investment

THANK YOU
ANY QUESTIONS?