Knowing The Differences Between Commercial Banks And BPRs, Choose To Use Which Services?

YOGYAKARTA - The banking world in Indonesia is divided into two types, namely public banks and people's credit banks (BPR). However, many do not yet know the difference between general banks and BPR.

Commercial banks and BPRs have the same goal as providers of financial transaction services, such as deposits, storage, collection, and borrowing. Both types of banks at first glance seem similar, but both have differences in terms of service and business activities.

So what are the differences between General Bank and BPR? But before that you need to know first the understanding or definition of the two types of banks.

Commercial banks are banks engaged in conventional business activities providing financial transaction services. Banks operate based on sharia principles in all their services. In addition, general banks also function to raise funds in the form of regular savings, checking deposit savings, deposit savings, deposit certificates, futures savings, and others.

Bank Percreditan Rakyat juga merupakan bank yang bergerak dalam kegiatan usaha konvensi atau berdasarkan Prinsipasi Syariah. BPR juga melakukan penempunkan dana berupa tabungan, depositor berjangka, dan bentuk lainnya. Namun perbedaannya dengan bank umum, BPR tidak memberikan layanan transaksi pembayaran.

There are several things that distinguish the General Bank from the BPR. There are five points that you can remember.

banking services are the most viewed by prospective customers. Commercial banks and BPRs have differences in terms of their services. Commercial banks have many or complex services, such as insurance, Gior, foreign exchange, and so on. Meanwhile, BPR has services that are only simple.

Commercial Banks and BPRs also have differences within the region. Commercial Banks have a wider or unlimited reach. Meanwhile, the scope of the Bank BPR area is narrower covering the Regency area. The scope of the area is adjusted to the purpose of establishing the BPR itself.

Business activities run by Commercial Banks and BPRs are also different. Bank BPR provides time deposit services, credit, savings, financing, deposit certificates, future deposits, placement of SBI funds (Indonesian Futures Letter, and placement of funds.

Commercial Banks provide more services than all of these services. In addition, public banks also provide services for issuing letters for acknowledgment of debt, transfers, foreign exchanges, inkaso, clearing, transfer, and others.

The difference between Commercial Bank and BPR is also contained in the terms of capital. General Bank Capital is at least Rp. 3 trillion and Sharia banks are Rp. 1 trillion. Meanwhile, the requirements for BPR capital are smaller and more varied.

The BPR's capital variant adjusts to the 4 zones divided into the Financial Services Authority Regulation (OJK) Number 20/POJK.03/2014 article 5. The BPR capital in zone 4 starts with a nominal value of IDR 4 billion, while the zone 1 is IDR 14 billion.

Commercial Banks and BPR both serve deposit and credit requests. However, there are differences in terms of service. Commercial banks provide more services and a variety of giros, investment credits, consumptive credits, and working capital loans from the customer segment.

Meanwhile, BPR has fewer services. The services provided are in the form of savings and time deposits. The provision of credit is for employees, credit without elegantness, and small business loans. BPR does not serve credit cards as presented by conventional banks.

The difference between Commercial Bank and BPR is also regulated in Law no. 10 of 1998 Article 1. Commercial banks operate to provide transaction traffic services or payments. Meanwhile, Bank BPR does not have service services. Both are also different in raising funds.

That is the difference between General Bank and BPR and the services provided by each. If you intend to use banking services, choose the type of bank according to your needs.

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