IMF Reform Soon In Start !

The International Monetary Fund or the International Monetary Fund (IMF) is an international organization that is responsible in regulating the global financial system and provide loans to member nations to help the problems of financial balance of each country. One mission is to help countries experiencing serious economic difficulties, and in return, these countries are required to establish certain policies, such as privatization of state enterprises.


Member countries of the G-20 agreed to conduct a massive reform in the body of the International Monetary Fund (IMF). This was done in the middle of a shift map of world economic power. In these reforms, new economic powers like China the world will be given a large share of power in decision making at the IMF. The finance ministers of the G-20 meeting in South Korea decided to reform, after going through various efforts for years to make the sound power in the IMF shifted to countries with new economic powers like China and India.

Definition, Function and Role of Commercial Banks in the Economy

Banking experts in developed countries defines a commercial bank as a profit-oriented financial institution. To obtain the profit of commercial banks perform the inter mediation function. Because permitted  raise funds in the form of deposits, commercial banks also called depository financial institutions. Based on its ability to create money (demand deposits), commercial banks may also be known as the creator of a commercial bank demand deposits. 

The definition of commercial banks according to Law No. 10 of 1998:"Commercial Bank is a bank conducting business based on conventional or Islamic principles in its activities to provide services in payment traffic."

The functions of commercial banks which are described below shows how important the presence of commercial banks in modern economies, namely:

 1. Creation of money. Money is created by commercial banks demand deposits, namely the means of payment via transfer mechanism (clearing). The ability to create demand deposits of commercial banks led possisi and function in the implementation of monetary policy.The central bank can reduce or increase the money supply by affecting the ability of commercial banks to create demand deposits.