BANKING ACTIVITIES

Banking Activities
 Bank Activities
 Bank’s Profit
 Interest Rates and Factors That
Influence It
 Components That Require Mortgage
Interest
 Types of Charges Credit Interest Rates
Bank Activities
1. Collecting funds from the community
(Funding) in the form of:
 Demand deposit
 Saving deposit
 Time deposit
Bank Activities
2. Disbursing funds to the public
(Lending) in the form of loans such as:
 Investment Credit
 Working capital credit
 Trade Credit
 Consumptive Credit
 Earning Credit
Bank Activities
3. Providing other bank services
(Services) including:
 Receive deposits such as: Payment
of taxes, electricity bills, etc.
 Serve payments such as: Salary,
pension, dividend, etc.
 In the Capital Market, banking can
provide: Underwriters, guarantor,
trustee, etc.
Bank Activities
 Transfer (remittance)
 Collection
 Clearing
 Safe Deposit Box
 Bank Card
 Bank guarantee
 Bank's reference
 Bank Draft
 Letter of credit (L / C)
 Traveler Check
 Other services
Bank’s Profit
Banks make a profit in 2 ways, namely:
1) Spread based income
2) Fee based income
Bank’s Profit
Profits earned from bank services, include:
 Administration fee
 Transfer fee
 Billing fee
 Provision fee
 Safe deposit box rental fee
 Etc.
Interest Rates and Factors That Influence
It
Definition of Interest Rates :
 The price of using money or bias is also seen
as rent for using money for a certain period of
time.
 The price of borrowing money to use its
purchasing power and is usually expressed in
percent (%).
 The price that must be paid to customers (those
who have deposits) with those that customers
must pay to banks (customers who get loans).
Interest Rates and Factors That Influence
It
In daily banking activities, there are two
types of interest given to its customers,
namely:
1. Saving interest
2. Loan interest
Interest Rates and Factors That Influence
It
Factors That Affect Interest Rates
The factors that influence interest rate determination are:
1. Fund Requirements
2. Desired Target Profits
3. Quality Guarantee
4. Government Policy
5. Duration
6. Company reputation
7. Competitive Products
8. Good Relationship
9. Competition
Components That Require Mortgage
Interest
The components in determining loan
interest rates are:
1. Total Cost of Funds
2. Operating Costs
3. Credit Risk Reserve
4. Desired Profit
5. Tax
Types of Charges Credit Interest Rates

The method of charging credit interest at

banks includes:
1. Sliding Rate
2. Flat Rate
3. Floating Rate
Types of Charges Credit Interest Rates

Examples of calculating loan interest rates

can be seen in the textbook “Manajemen
Bank”.
Any question?