YOGYAKARTA In simple terms, fee base income is one way for conventional banks to benefit. The gain of fees is legal and common in the banking world. To understand further understanding, see the following article.
Reporting from the website of the Ministry of Finance Learning Center, fee base income is income obtained by banks outside of interest on bank credit. This income can be sourced from outside the main activities of banking services. This source is an alternative bank income that is relatively safe from risk because it does not conflict with Non-performing Loans (NPL) like credit interest income.
In Putu Ayuni Kartika Putri Suardana's writing published in the Accounting Scientific Journal & Business (2017) it was also explained that banking fee base income included non-interest operating income. Non-interest operating income covers several categories, namely as follows.
Provisional income is a reward or cost received by banks because it has provided certain facilities or services. while the commission's income is a reward obtained by banks as intermediary services in transactions or basic activities, such as fund management services.
This income comes from foreign exchange transactions or foreign currency trading. This bank revenue is obtained from the difference in exchange rates in foreign currency trading transactions carried out by banks.
Other operating income includes other sources. There are many sources that fall into this category, such as dividend receipts, buying and selling securities, investment results, and many more.
In the final task entitled Fee Based Income Analysis in Increasing Profitability at PT. Bank Sumut written by Beni Putra, it is explained that banks are basically not only raising funds from the public. The bank also provides other services outside of this function. The following are other sources that make fee-based income.
The profits obtained from the current fee base income are very important. The reason is that the profits obtained from spread-based are considered to be smaller because of the increasingly fierce interbank competition.
This means that fee base income is a very important bank income, especially in today's era. Banks cannot rely solely on profits from one source. Visit VOI.id to get other interesting information.
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