INTRODUCTIONINTRODUCTION

Money

Is the legal

transactions payment

HISTORY OF MONEYBarter Systems

interchanging the goods and products

utilizing trading tool from agricultural products

as cocoa and others (this is known as “money commodity”)

Gradually changed to hard objects like stone and metal

Commodity functioned as trading tools

Croesus from Greek (560 – 546 Prechristian)

created gold and silver coins

Benjamin Franklin (Amerika)

Known as “You Are Bank Note”The first person

to print bank note

(dollar)

FINANCIAL INSTITUTION

An institution (public or private) that collects fund (from the public or other institutions) and invests them in financial assets; provides financial services for its clients or members

Financial Institution

Bank Non Bank

Finance Company Cooperation

Capital Market Insurance Company

Pledge Company

INDONESIAN BANKING HISTORY

No Bank Role Development Its Region Development1 Commerce among royals.

Bank as money exchange institution for business men among royals

Babylonia era antiqueGreece era Romanian era

2 World commerceBank as intermediate institution, which accepted fund from society in deposit and give that fund back to society that needed credit

Europe (Industrial Revolution)(England, France, Dutch, Spain, Portugese)

West Asia (European colony)

Indonesia ( Dutch colony)

1746The first Indonesian Bank is De Leening's Van Bank, founded by VOC in Javanese

1752

De Bank Van Leening became De Bank Courant En Bank Van Leening. Total banks established by Dutch in Indonesia increased. One of them was De Javasche Bank, afterward became Indonesian Central Bank.

24-01-1828

De Javasche Bank became the commercial bank

1949

“Konferensi Meja Bundar” at Den Haag. Dutch, increase d the roles of the De Javasche Bank as Central Bank and Commercial Bank

01-07-1953

De Javasche Bank nationalized and changed its name to “Bank Indonesia” (UU Pokok BI No. 11/1953) its had double roles.Thus, worsened the economics

1955PP No. 1/1955 governed credit, role and authority of banks in Indonesian

1968Law No. 13/1968 “Bank Indonesia” was limited its function as central bank

17-05-1999

Law No. 23/1999 Function and position of “Bank Indonesia” were independent and free of government interference

“Bank Indonesia“

Responsibility are:

1. Establishing and performing monetary policy

2. Managing and monitoring the flow of paying system

3. Managing and supporting banking company in Indonesian

INDONESIAN BANKING ARCHITECTURE (IBA)

Background of IBAResponded to economic crisis 1977, defined banking industry weaknesses including its disability to withstand the threats such as the external threats of industry

Definition of IBAAs framework for Indonesian banking formative and continuity its operating system for 5 - 10 years

Responsibility of IBAMaking banking system strong and efficient that created financial stability and increase the economic growth

Bank categorization based on IBA Bank Category Total Capital

1. International Bank > Rp. 50 Trilliun

2. National Bank > Rp. 10 Trilliun – Rp. 50 Trilliun

3. Focus Bank Rp. 10 Milyar – Rp. 10 Trilliun

4. Limited Effort bank < Rp. 100 Milyar