Banking Law Part 1 The Concept
Summary
TLDRThe video script provides an insightful overview of banking law within the context of business law. It emphasizes the fundamental concept of banking law, which governs the operations and regulations of banking institutions. The lecture highlights that banks are primarily financial institutions that collect money from the public through savings and then lend it back in the form of credit to support business endeavors. The activities of a bank are not only confined to lending but also include developing classifications of savings and credit products. The script also touches on the regulatory framework in Indonesia, with a focus on economic democracy and cooperative principles, aiming to support national development, equitable distribution, and sustainable economic growth. The lecturer encourages critical thinking about the alignment of banking practices with the principles and regulations, and sets the stage for a deeper discussion on the legal aspects and procedures of banking in future lessons.
Takeaways
- 📚 **Banking Law Definition**: Banking law is a specific area within business law that governs the operations of banks, including their establishment, activities, procedures, and business processes.
- 🏦 **Bank as an Institution**: A bank is defined as an institution that can provide financial services, such as accepting deposits (savings) and extending credit (loans) to customers.
- 💼 **Bank Activities**: The primary activities of a bank include collecting money from the society in the form of savings and returning it to the society in the form of credit to generate profit.
- 📈 **Bank Profitability**: Banks aim to profit by offering various financial options to the public, developing classifications of services like different types of savings and credit products.
- 🤔 **Critical Thinking**: Students are encouraged to critically think about banks offering services outside their core activities, such as insurance or business instruments, and how it aligns with legal principles.
- 📜 **Regulatory Compliance**: Banks must adhere to numerous regulations, including specific laws and government regulations that are designed to protect national values and economic stability.
- 🌍 **Principles in Different Countries**: Banking principles vary by country, reflecting each nation's unique values and perspectives on economic democracy and financial systems.
- 👪 **Indonesian Banking Principles**: In Indonesia, the principle of economic democracy is emphasized, allowing freedom in economic activities as long as they are lawful and support the concept of family support and mutual aid.
- 💹 **Banking Functions and Objectives**: The function of banking is to mobilize and channel funds from the public, with objectives that include supporting national development, equitable distribution, economic growth, and improving the welfare of the people.
- 🏢 **Bank Establishment and Operations**: The legal aspects of banking involve the formal establishment of banks based on Indonesian law and the processes involved in their daily operations.
- ✅ **Continuing Discussion**: The lecture is a continuation of the discussion on banking law, with further details to be covered in subsequent lessons.
Q & A
What is the primary focus of the banking law?
-The primary focus of the banking law is to govern the operations of banks, including the institutions, activities, procedures, and processes involved in the realization of business within the banking sector.
What are the main activities that banks engage in?
-The main activities of banks include collecting money from society in the form of savings and returning it to society in the form of credit. Banks also aim to generate profit through these transactions and develop classifications of services such as different types of savings and credit products.
What is the role of a bank in economic development?
-The role of a bank in economic development is to mobilize and channel funds from the public to those who need it for business or investment. This supports national development, equitable distribution of wealth, economic growth, and sustainable national stability.
What is the principle of banking in Indonesia?
-The principle of banking in Indonesia is economic democracy, which provides freedom for economic activities as long as they are based on the law. It also supports the system of mutual assistance and uses the concept of family support in economic matters.
How does the banking law relate to the concept of a business entity?
-The banking law relates to the concept of a business entity by governing what kind of entity can be used to establish a bank, such as the different forms like a corporation or a partnership, and how these entities should be legally structured.
What are some of the classifications of credit and savings that banks offer?
-Banks offer various classifications of credit, such as loans, credit cards, and other types of credit facilities. For savings, there are regular savings accounts, time deposits, and other types of savings products.
Why is it important for banks to follow the law and regulations?
-It is important for banks to follow the law and regulations to ensure they operate within the legal framework, protect the interests of their customers, maintain the stability of the financial system, and adhere to the values and principles of the country they operate in.
What is the significance of the cooperative system in the Indonesian economy?
-The cooperative system is significant in the Indonesian economy as it is considered the soul of the Indonesian economy. It embodies the principles of mutual assistance and support, which are central to the country's economic and social values.
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What are the objectives of banking activities?
-The objectives of banking activities are to support national development, improve equitable distribution of wealth, ensure economic growth, achieve dynamic sustainable growth, and enhance the welfare of the common people.
How does the banking law ensure the protection of Indonesian values?
-The banking law ensures the protection of Indonesian values by regulating banking activities in a way that aligns with the country's principles and values, such as economic democracy and family support, and by providing a legal framework that promotes these values in real-life business activities.
What are some of the legal references mentioned in the script related to banking law in Indonesia?
-The script mentions Law No. 92 of 1992 and Law No. 98 of 1998 as legal references related to banking law in Indonesia. Additionally, there are government regulations that further detail the conduct of banking operations in the country.
How does the banking law address the offering of non-banking activities by banks, such as insurance or business instruments?
-The banking law addresses the offering of non-banking activities by ensuring that all activities, including those outside the traditional scope of banking, are conducted within the legal framework and in accordance with the regulations governing banking institutions.
Outlines
📚 Introduction to Banking Law
This paragraph introduces the topic of banking law as a continuation from labor law, emphasizing the importance of understanding the fundamental concepts before diving into specifics. It outlines that banking law is a subset of business law, focusing on the regulation of banking institutions, their activities, and the processes involved in their operations. The paragraph explains that banking law governs what kind of institution can be used to establish a bank, the activities that a bank can engage in, such as savings and credit provision, and the procedures for establishing and running a bank. It also touches on the bank's role as an institution that provides funds to others, collecting money from society and returning it in the form of credit to generate profit.
🏦 Core Activities and Principles of Banking
The second paragraph delves into the core activities of banks, which include collecting money from society in the form of savings and returning it as credit. It discusses how banks profit from this process and how the classification of services and credits has evolved. The paragraph also addresses the potential for banks to offer services outside their core activities, such as insurance or business instruments, and the importance of adhering to legal principles and regulations. It mentions various laws and government regulations in Indonesia that govern banking, highlighting the principle of economic democracy and the concept of family support in economic endeavors. The paragraph concludes by emphasizing the need for banks to operate within the legal framework and to align with the country's values and principles.
🌐 Functions and Objectives of Banking
The final paragraph philosophically examines the functions and objectives of banking activities. It describes the role of banks in mobilizing and channeling funds from the public, allowing those with surplus money to save and earn interest, and those with business ideas but lacking capital to access funds. The paragraph outlines the objectives of banking as supporting national development, improving equitable distribution, fostering economic growth, and enhancing the welfare of the common people. It concludes with a note on the legal aspects of banking, including the establishment of banks in accordance with Indonesian law and the procedures of their activities, setting the stage for further discussion on the topic.
Mindmap
Keywords
💡Banking Law
💡Business Law
💡Bank
💡Credit
💡Savings
💡Economic Democracy
💡Regulations
💡Cooperative
💡National Development
💡Welfare of the Common People
💡Legal Aspect
Highlights
The lecture focuses on the continuation of business law, specifically banking law.
Banking law is a subset of business law that governs banking institutions, activities, procedures, and business processes.
The concept of banking law includes the types of institutions that can establish a bank and the activities banks can perform, such as saving deposits and providing credit.
Banks operate by collecting money from society in the form of savings and returning it as credit to those who need funds.
The bank's profit comes from the process of collecting and returning money to society, with developed classifications of savings and credit.
The principle of banking in Indonesia is economic democracy, which allows freedom in economic activities as long as they are based on the law.
Indonesian banking principles also support the system of gotong royong (mutual assistance) and the concept of family support in economic endeavors.
The function of banking is to mobilize and channel funds from the public to those who need it for business or other capital-intensive activities.
The objectives of banking include supporting national development, improving equitable distribution, and promoting economic growth and stability.
The lecture emphasizes the importance of following legal principles and regulations in banking, as dictated by Indonesian law.
The banking system in Indonesia is expected to be cooperative, reflecting the soul of the Indonesian economy.
The lecture discusses the potential for critical analysis of the structure and existing regulations in Indonesia to determine their effectiveness in supporting the stated principles.
The bank's activities are not limited to traditional banking services; they may also offer insurance or other business instruments.
The regulation of banking in Indonesia is covered by various laws and government regulations, such as Law 92 and Law 98, aiming to protect Indonesian values.
The lecture suggests that students should be critical and understand the legal aspects of banking, including the establishment and operation of banks.
The concept of banking law is essential for understanding the legal framework within which banks operate and the principles that guide their activities.
The lecture concludes with an invitation for students to engage in further discussions on banking law.
Transcripts
hello class welcome to business full of
course this is the continuation of our
discussion regarding the business law
and the previous lesson we have learned
about the labor law and in this occasion
we will continue with the discussion
regarding the banking law and as usual
to give you a very fundamental
understanding before we discuss about
the most specific discussion regarding
the banking law I will tell you as usual
the concept of the banking law so
banking law is one of a law in the scope
of business law which is specifically
governing the banking about the law I
think we have finished discussing it and
the very first meeting of this course
meanwhile for the banking is something
new in our discussion so we will focus
on the banking to to understand about
the concept so what is banking talking
about banking is actually we are talking
about anything related to the bank so
anything that related to the bag it
could be regarding the institution so as
the activities of the band and then the
procedures and also the the process of
realization of the business so in
banking law it is governed what kind of
institution
can be used to establish the bank if you
still remember when I delivered you
about the business entity so you can use
the understanding of the topic in
spewing the concept of a situation of
the bank so do our does it's kind of
this is entity can be used to establish
a bank like can you make a begin in the
form of fear my in the form of safe fear
something like that so it's all about
institution and also about the
activities what are the activities that
can be done by the bank by like saving
the posse heads and also give the credit
etc and how how is the procedures of the
establishment of the company and also
how is the process of the running of the
business so that is banking everything
related to the bank
especially these four things
it's called banking principally bank is
an institution that could give fun for
others so bank can can give some
fundraisers for the parties immediate
the one that we would called next as a
adapter best on the Indonesian law the
main activities of the bank yes
collecting the money bank is collecting
the money from the society which is
asked you your parents your neighbors so
each of us have some money and being
different amount and Bank is to give us
a variaty of options how we are going to
use our money and one of the
opportunities to save
money so it become a savings it becomes
a savings because we saved this money to
the bank so now the bank collecting the
money after collecting the money of
course the bank is trying to get some
profit so to get the profit bank return
it back again this money that is
collected in from the society this is
the society the bank returned it back
again to the society again who need some
fundraise so they returned it back again
to the society in form of credit so what
is the activities of the bank is by
collecting the money from the society in
form of savings and return it back again
to the society in form of the credit and
by doing this the band would then get
the profit of course further it has some
improvement the activities is develop
the classification of servings is also
develop the classification of credit is
also developed it's not always you got
you take the credit to the banking for
some loans they give you some money you
have to pay that know you can recognize
many classification of credit in the
bank if you use my credit nice credit
card or maybe cut the air and the other
kind of credit and fold for the saving
as well you have the regular savings
they proceed and the other kind of
savings so there is principally the
activities of the bank well then now you
can be critical what if a bank one they
or maybe your parents or your sister
your rarest experience with the
situation as I experience will be
situation that the bank is offering
something which is not actually the
activities of the bank maybe they offer
you some insurance or they offer you a
certain business instrument you have
what do you think about that Bess on the
lego principle with what we know about
la here we're not talking about business
you talk about business in your school
but here I'm teaching you to the law but
based on the law then this is the one
that you can do and the law is binding
and it's a must to follow the law so
there is the bank so you need to rate
also the regulations yeah there are many
regulation about banking lon 92 in law
98 and also the conduction regulation
right quadrant omarina the government
regulation to learn further about it
yeah in Indonesia the conduction of the
banking of in Indonesia good principle
as different country has different
principle as I told you at the very
first meeting as well that every country
has different value different point of
view regarding what is the best for them
Indonesia all the regulation in our
country is to protect the Indonesian
value right and it's also realized in
the business of activities so the value
should be realized in real life of
society as well as in banking and the
principle of the banking in Indonesia is
economic democracy
and this this means that it gives a
freedom of of making evil for the
economic but must be best on the law and
also if we talk further about the
principles in Asia we we support the
system of get earnest yeah and also we
use the concept of family support to
argA and economic even though you also
can be critical about that if you try to
analyze the structure and the existing
regulation Indonesia whether it is
supporting it or not because compared to
itself law number forty 2007 itself it's
small liberal than then what are we
expecting if we'd want to fully
implement the Indonesian system so
actually all the all the institution and
the body Indonesia must be a cooperative
because cooperative is the soul of
Indonesian economic the principle is
really Indonesian well better is taken
from from a different country with
different perspective from so there is
the principle and the basic activities
of the banking and if we take look at
philosophically so the banking activity
is has some function and objective the
function is to mobilize and the channel
funds from the public to the public
again
so people who has bundle or more money
they can save it and keep on getting
additional money in the form of interest
well the other person who is less or
lack of the capital but have an idea of
business or
be evil and willing to do a business so
they can channel it they can try to find
some fun dress from the bank and the
bank can can collect the money to the
one who need the money and this this man
could use the money for the business and
if the business is successful it would
also help the economic of the country so
that's why the objectives of the banking
is supporting the National Development
for the purpose of improving equitable
distribution so as the economy growth
and also dynamic sustainable growth and
dynamic sustainable national stability
and we could also including the purpose
of M at improving the welfare of the
common people so that's the concept so
when we talk about banking's we're in
focus of the bank in the bank the legal
aspect of Bhangra including the
institution so how to make the bank
formally legally based on Indonesian law
and procedure how is the process of the
activities of the bank then after this
hopefully you could follow the next
discussion much better but for for your
guidance in the beginning this is the
concept that you have to know in it's
all for this part we will discuss
further later but the banking look at
the next one thank you
god bless
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