The characteristics of credit funds are as follows

Credit funds refer to monetary funds accumulated and distributed by financial institutions by means of credit. The sources of credit funds for financial institutions include various deposits, financial bonds, liabilities to international financial institutions, cash in circulation and other items; The uses of credit funds include various loans, securities and investments, gold holdings, foreign exchange transactions, financial loans and assets in international financial institutions.

definition

There are two explanations: first, the funds here refer to a certain amount of monetary funds, which are neither commodity funds nor production funds; Second, it is monetary funds because it is not only the currency of capital function, that is, the circulation of funds starts from here, but also the currency of functions of money, that is, it plays the role of circulation means and payment means in circulation.

Funds used by socialist state banks to issue loans. The collection and use of credit funds take the form of paid deposits and loans, which are characterized by borrowing and paying interest on time.

trait

(1) Paid profit, that is, deposit withdrawal, loan borrowing and repayment. Bank deposits have to pay interest, bank loans have to charge interest, and the total interest income of loans is greater than deposit interest expenses plus various operating expenses, so that credit funds can make a profit after a movement cycle. Therefore, credit funds are not used for various financial expenditures. (2) liquidity or turnover, credit funds are kept here, borrowed there, and kept coming in and out. (3) Accommodation: banks flexibly adjust the surplus and deficiency of social funds through various business means and credit instruments according to the time difference, geographical difference and project difference in the use of social funds in different periods.