History of Bank

The term bank is language taken from the Italian language, which means that banco table. The use of the term is due to the reality that the administrative process bank work executed on the table. From the word banco is what in Indonesian to "bank", ie entities of interest in finance and spend money in the community, especially providing credit services in payment traffic and the circulation of money, then the juridical definition:

Banks are business entities that raise funds from the public in the form of savings and channel them to the public in the form of credit and or other forms in order to improve the lives of the people. Sense it shows that it not only serves the banks to manage money, but also further to increase the economic level of society. In modern economy, basically banks are intermediaries between the funds and channeling the surplus funds to the needy. This role is called finacial intermediary. In other words, the task basically banks accept deposits and make loans.

According to historical records, the banking business has been known for approximately 2,500 years before Christ in Ancient Egyptian society and Ancient Greek, then Roman people. Therefore appropriate that Plato (427-374 BC) was talking about the dangers of rents. Modern banking began to develop in Italy in medieval controlled by a few families to finance the rapidly growing trade. than of bank after entering the 18th century and 19, until now.

Rapid development of the bank in the current era, and thus the complexity of human needs, the services offered and provided by the bank too complex, such as currency exchange, sending money from one place to another, issue and circulate money. That way, the bank launched a trading role and payment as well as provide security protection money from a variety of disorders, such as theft, and robbery.

Bank when viewed in terms of the type consisting of two, the Islamic Bank and Conventional Banks. There are some fundamental differences of the sexes. Especially when viewed from the operational principles of Islamic Bank do not use the flowers, it will automatically regardless of the monetary turmoil. This condition is different from the conventional banks in operation always wear flowers principle, and the principle of this kind must always pay attention to the domestic inflation rate, real interest rates abroad and other competition. So, depending Conventional Bank and affected by monetary shocks, while Islamic Bank is independent to the application of the results, and it does not depend on the monetary turmoil, even Islamic Bank in this regard may encourage investment, opening new jobs, and equal opportunity efforts. Bank Islam is mentioned, as well as to gain legitimacy and justification of law based on the traditions to be studied further.