What does the business of commercial banking include and what is its purpose

The business of a commercial bank includes: assets, liabilities, and intermediate business. The purpose is like any other business in order to make a profit.

I. A commercial bank is a type of bank, the duty is to undertake the credit intermediary financial institutions through deposits, loans, remittances, savings and other businesses. The main scope of business is to absorb public deposits, issue loans and handle bill discounting. General commercial banks do not have the right to issue currency, the traditional business of commercial banks is mainly focused on operating deposit and loan business.

The initial use of the concept of "commercial banks" was because in the early stages of their development, these banks only undertook "commercial" short-term lending business. The lending period was generally less than one year, and the lending was generally to businessmen and import/export traders.

Third, people will be the main short-term deposits, the issuance of short-term commercial loans for the basic business of the bank, known as commercial banks. China's commercial banks are in accordance with the "Chinese people's *** and the State Commercial Banks Law" and "Chinese people's *** and the State Company Law" set up to absorb public deposits, loans, settlement and other business enterprise legal person.

Fourth, from the point of view of the development of commercial banks, commercial banks have two business models. One is the British model, commercial banks are mainly financing short-term commercial funds, with a short lending period, high liquidity. That is to say, with lower interest rates to borrow deposits, with higher interest rates to lend, between the deposit and loan spread is the main profits of commercial banks, this mode of operation for the bank is relatively safe and reliable. The other is the German style, whose business is integrated.

V. Characteristics of the enterprise

Must have its own capital required for business operations and meet the minimum capital requirements set by the management, must pay taxes according to the rules and regulations, the implementation of self-management, bear the risks, self-responsibility, self-restraint, in order to obtain profits for the purpose of business and the impetus for development.

Sixth, financial enterprises

Commercial banks are not ordinary commodities, but the object of money, funds, commercial banks, the scope of business activities is not in the field of production and circulation, but the field of money and credit, commercial banks are not directly engaged in the production and distribution of commodities, but for the production and distribution of commodities engaged in the provision of financial services to the business enterprise.