History and Origin of the Bank

The word bank comes from the Italian language, namely banque or banca which means bench. Florence's bankers during the Renaissance carried out their transactions by sitting behind a money changer's desk, in contrast to most people's jobs which did not allow them to sit and work.

The bank was first established in the form of a firm in general in 1690, when the British empire was willing to plan to rebuild its naval strength to compete with the strength of the French fleet, but the British government at that time did not have the funding capability then based on the ideas of William Paterson who later by Charles Montagu realized by establishing a financial intermediary institution which was finally able to meet the financing funds in just twelve days.

History records that the origin of banking activities was known in the days of the ancient kingdoms in mainland Europe. Then this banking business expanded to West Asia by traders. The development of banking in Asia, Africa and America was brought about by Europeans when they colonized their colonies in Asia, Africa and the Americas. If traced, the history of banking is known starting from money exchange services. So in the history of banking, the meaning of the bank is known as a table where money changers. In the course of the history of the kingdom in the past the exchange of money was carried out between one kingdom and another. This exchange activity is now known as a Foreign Exchange Trader (Money Changer). Then in further developments, banking operational activities developed again into a place of depositing money or what is now known as saving activity. Next, banking activity is increased with money loan activity. The money saved by the community, by the bank, is lent back to the people who need it. Other banking services will follow in accordance with the times and the increasingly diverse needs of the community.

The new banking business started from the Babylonian era, then to the times of Ancient Greece and Rome. However, at that time the main task of the bank was only as a place to exchange money. Along with the development of world trade, the development of banking is also growing rapidly because the development of the banking world cannot be separated from the development of trade. The development of trade initially only in mainland Europe eventually spread to West Asia. The banks that were already well-known at that time in continental Europe were the Bank of Venice in 1171, followed by the Bank of Genoa and the Bank of Barcelona in 1320. On the other hand, the development of banking in mainland England only began in the 16th century. However, because Britain was so actively looking for trading areas which were later colonized, the development of banking was also brought to its colonies.

History of banking in Indonesia

The history of banking in Indonesia cannot be separated from the colonial era of the Dutch East Indies. At that time there were several banks that played an important role in the Dutch East Indies. These banks include the following.

1. De Javasce NV

2. De Post Poar Bank

3. Hulp en Spaar Bank

4. Nederland Handles Maatscappi (NHM)

5. Nationale Handles Bank (NHB)

6. De Escompto Bank (NV)

In addition, there are also banks owned by Indonesians and foreigners such as China, Japan, and Europe. These banks include:

1. National Bank of Indonesia

2. Merchant Abuan Bank

3. NV Bank Boemi

4. The Charted Bank Of India

5. The Yokohama Species Bank

6. The Matsui Bank

7. The Bank of China

8. Batavia Bank

In the era of independence, banking in Indonesia progressed and developed again. Several Dutch banks were nationalized by the Indonesian government. The banks that existed in the early days of independence included:

Bank Negara Indonesia, which was established on July 5, 1946, is now known as BNI'46.

Bank Rakyat Indonesia which was founded on February 22, 1946. This bank originated from De Algemenevolks Credit Bank or Syomin Ginko.

Bank Surakarta Airline Fair Prosperity (MAI) in 1945 in Solo.

Bank Indonesia in Palembang in 1946.

National Trade Bank of Indonesia in 1946 in Medan.

Indonesian Banking Corporation in 1947 in Yogyakarta, later became Bank Amerta.

NV Bank Sulawesi in Manado in 1946.

Bank Dagang Indonesia NV in Samarinda in 1950 then merged with Bank Pasifik.

Bank Timur NV in Semarang changed its name to Bank Gemari. Then merged with Bank Central Asia (BCA) in 1949.

In Indonesia, banking practices have spread to remote rural areas. Financial institutions in the form of banks in Indonesia are Commercial Banks, Rural Banks (BPR), Sharia Commercial Banks, and Sharia BPRs. Each form of financial institution has different characteristics and functions.

Reference :

Hasoloan, Jimmy. 2014. Ekonomi Moneter. Yogyakarta : Deepublish.