Bank Give You Money

Bank's role as a financial intermediary or financial intermediaries, aiming to obtain resources from surplus units and further funds are allocated or distributed back to the deficit units, which require financing from banks. Funds from the surplus units in the form of deposits, ie funds entrusted by the public to the bank based on deposit agreement funds in the form of demand deposits, time deposits, certificates of deposits, savings and / or other forms.

What is the demand deposits, time deposits, certificates of deposit, etc. mentioned earlier? They are the main products of deposits which are most important source of funds and the largest share in the structure of bank funding sources. Demand deposits are deposits which may be withdrawn at any time by check, giro, forms of payment order, or by transfer. While the deposits are deposits that can be withdrawn only at certain times based on the agreement with the bank depositor. Certificates of deposits are deposits in the form of a certificate of deposit that evidence storage be transferable. Savings are deposits that can be withdrawn only under certain agreed conditions, but can not be withdrawn by check, giro, and other tools are equivalent.

In addition to the above main products, the bank can also mobilize funds raised by issuing securities in the form of debt acknowledgment letters, notes, stocks bonds, credit securities, or any derivative thereof, or in the form customarily traded on the capital market and money market.

In channeling funds to the public, banks should harmonize aspects of profitability and liquidity. This means that not all the funds collected from the assets invested again for profit. There should be funds saved in the bank, for "just in case" if there is a withdrawal or payment which must be issued by the bank.