Hi-Fella Insights

Commercial Banks: Pick The Best Service for Your Uses

In short, the economy moves like a simple machine. One of its parts is the bank. Banks themselves are divided into 2, Commercial Banks and Investment Banks. Commercial Banks are one of the drivers of the economy and business in the world.

Here is a brief explanation of Commercial Banks and the services you can use for everyday needs or to expand your business.

Definition and Role of Commercial Banks

Simply, Commercial Banks are the financial institutions for individuals and businesses that allow them to deposit money/assets, ask for loans, and provide basic financial needs with an account. Commercial Banks also work closely with National Banks that are available in every country to manage the economy in a nation, even globally. 

Importance of Commercial Banks

As said before, the importance of commercial banks is the economy of a nation (even the world at some points). Why? Here is some of the role that commercial banks play in the economy.

1. A Trusted Institution for Transaction

The first reason is commercial banks are safe and trusted institutions for individuals or businesses to save their wealth. Especially in a large amount of money or assets. But in the bigger picture, commercial banks help individuals, businesses, and even a country to transfer money without much time to travel and energy to change the currency. 

2. Spinning the Wheel of the Economy

One of the most important roles of commercial banks is spinning the wheel of the economy with their products. Such as loans, credit, banking services, etc. These products make a way if someone wants to buy something they can’t afford yet or build a new business. 

Services of Commercial Banks

Continuing the explanation of bank services above, here are some services from commercial banks that you can use. 

1. Commercial Landing

Commercial Landing is a service for a business or individual who applies for a loan of certain funds to be repaid within a certain period of time. 

2. Credit 

Credit is one of the services of a commercial bank that allows customers to transact at a certain money limit which must be paid back before the deadline. The difference between this credit and borrowing is that the more diligent you are in paying your credit loan on time, you will get points that you can later use. 

3. Depository Services

Another commercial bank service is the storage of money or valuables. This service will be of great help to you if you want to keep your money or valuables safe.

4. International Transactions

One of the benefits and virtues of commercial banks is the ease of international transactions. Through this service, you or your business can reach the international world without a long time lag due to currency differences.

Statistics of Commercial Banks

To broaden your knowledge about commercial banks, here are statistics on the total assets, deposits, and loans held by commercial banks in Indonesia.

Indonesia Key FAS Indicators
Source: IMF

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