The traditional credit business of banks

The traditional credit business of banks is

1. Including general loans, simple foreign exchange transactions, trade financing and other traditional businesses, mainly supported by a large number of branch networks and business volume.

2. Credit business, also known as credit assets or loan business, is the most important asset business of commercial banks. Credit is the main means of profit for commercial banks, because it can recover the principal and interest by lending, and make a profit after deducting the cost.

3. Among all sources of credit funds of commercial banks, self-owned funds account for a small proportion, generally accounting for about 65,438+00% of all debt business, but self-owned funds play a very important and irreplaceable role in the bank's business activities.

4. It is the premise for commercial banks to conduct business and engage in banking business. Secondly, it is the material basis for the risk loss of bank assets, providing protection for bank creditors and once again becoming the material guarantee for improving the competitiveness of banks.

Extended data

Traffic classification

1. According to the composition of its balance sheet, banking business is mainly divided into three categories: debt business, asset business and intermediary business.

2. Liabilities business is the business that commercial banks form a source of funds, and it is an important basis for intermediary business and assets of commercial banks.

3. The liability business of commercial banks is mainly composed of deposit business, loan business and inter-bank business.

4. Liabilities are debts that can be measured in money and will be repaid with assets or capital.

5. Deposits and derivative deposits are the main liabilities of banks, accounting for more than 80% of the sources of funds. In addition, interbank deposits, borrowing funds or issuing bonds also constitute bank liabilities.

6. Asset business refers to the use of funds by commercial banks, including loan business, securities investment business and cash asset business.

7. Intermediary business refers to the business that does not constitute the on-balance-sheet assets of commercial banks, but generates non-interest income from on-balance-sheet liabilities, including trading business, clearing business, payment and settlement business, bank card business, agency business, custody business, guarantee business, commitment business, wealth management business and electronic banking business.

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