What are financial institutions

Financial institutions are organizations specializing in financial activities, including central banks, commercial banks, policy banks, credit unions, trust and investment companies.

1, the central bank

Central Bank (Central Bank) in the country's dominant financial center institutions, is the state intervention and regulation of national economic development is an important tool. Responsible for the formulation and implementation of national monetary and credit policies, the sole right to issue currency, financial supervision.

China's central bank is the People's Bank of China, referred to as the central bank.

2. Commercial Bank

Commercial Bank (Commercial Bank), abbreviated as CB, is a type of bank, and its duty is to be a financial institution that undertakes credit intermediation through deposits, loans, remittances, savings and other operations.

The main scope of business is to take deposits from the public, 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.

3, policy banks

Policy banks (policy lender/non-commercial bank) refers to the government created to carry out the government's economic policy for the purpose of carrying out financial services in specific areas of the financial institutions do not aim at profit.

It is an important part of the reform of China's financial system to implement the separation of policy finance and commercial finance, to establish policy banks, to undertake strictly defined policy business, and at the same time to realize the commercialization of professional banks, to develop commercial banks, and to vigorously develop commercial financial services in order to adapt to the needs of the market economy.