Briefly describe the functions of commercial banks

Adjusting economy means that commercial banks adjust the shortage of funds in all aspects of society through their credit intermediary activities, and at the same time realize the adjustment of economic structure, consumption ratio investment and industrial structure under the guidance of the central bank's monetary policy and other national macro policies. In addition, commercial banks can adjust their balance of payments through their financing activities in the international market. ?

2. Credit generation

On the basis of credit intermediary function and payment intermediary function, commercial banks have produced credit creation function. A commercial bank is a bank that can absorb all kinds of deposits and issue loans with all kinds of deposits absorbed.

On the basis of cheque circulation and transfer settlement, loans are derived into deposits, and on the basis of not withdrawing cash or withdrawing cash completely, the sources of funds for commercial banks are increased, and finally derivative deposits several times as many as the original deposits are formed in the whole banking system.

3. Credit intermediary

Credit intermediary is the most basic function of commercial banks, which can best reflect the characteristics of their business activities. The essence of this function is to concentrate all kinds of idle money in the society in the bank through the debt business of the bank, and then invest it in various economic sectors through the asset business.

As the intermediary or representative of both borrowers and lenders of monetary funds, commercial banks realize the financing and obtain interest income from the difference between the cost of absorbing funds and the interest income of loans and investment income, thus forming bank profits. Commercial banks have become "big businessmen" buying and selling "capital goods".

4. Payment intermediary

Commercial banks not only act as credit intermediaries and finance monetary funds, but also perform monetary management functions. Through the transfer of deposits in the account, you can pay on behalf of customers, pay cash for customers on the basis of deposits, and become the currency keeper, cashier and payment agent of industrial and commercial enterprises, groups and individuals.

5. Financial services

With the development of economy, the business environment of industrial and commercial enterprises is becoming more and more complicated, and the business competition between banks is becoming more and more fierce. Because of wide contact and well-informed information, banks, especially computers, have been widely used in banking business.

It has the conditions to provide customers with information services and consulting services, and the "decision support" service provided for enterprises also came into being. With the development of specialization of production and circulation in industrial and commercial enterprises, it is also required to transfer many monetary businesses that originally belonged to enterprises to banks, such as paying wages and paying other expenses on behalf of them.

Extended data

Function:

large funds

In the financial system, commercial banks are the largest. As the most important financial intermediary in the financial market, commercial banks are in charge of trillions of funds and play a very important role in the financial market, especially the supply of liquidity is sufficient.

diversified business

Most commercial banks have many types of business, ranging from traditional deposit business, loan business and bill business to more diversified business, including investment banking and channel business. It also includes derivatives such as futures, swaps and forwards.

Credit generation

When the central bank implements monetary policy, it is often achieved through commercial banks. Commercial banks play an irreplaceable role in credit creation. Of course, another factor is the partial deposit reserve system.

Baidu encyclopedia-commercial bank