What are the characteristics of bank credit?

The characteristics of bank credit include: 1. Bank credit is indirect credit provided in the form of money, which mobilizes idle funds from all walks of life and provides credit for all walks of life. 2. Strong credit and wide acceptance. 3. The occurrence of credit is centralized and controllable. Different from commercial credit, bank credit belongs to indirect credit. In bank credit, banks act as credit media.

Compared with commercial credit, bank credit has the following characteristics: 1. Bank credit is provided in the form of money. Bank loans are not commodity capital in the process of industrial capital circulation, but temporarily idle monetary capital separated from industrial capital circulation, which overcomes the limitations of commercial credit in quantity and scale.

2. The borrowers of bank credit are monetary capitalists and functional capitalists. Because the form of providing credit is money, this overcomes the limitations of commercial credit in the direction of use. 3. At each stage of the industrial cycle, the dynamics of bank credit and industrial capital are often inconsistent.

4. The essence of bank credit is that the bank acts as an intermediary to enable the owners of monetary capital to pass the credit relationship between the bank and functional capital. 5. Bank credit may break through the limitations of commercial credit and expand the scope and scale of credit.