What is the essence of commercial banks?

The main business scope of commercial banks includes absorbing deposits from the public, enterprises and institutions, issuing loans, discounting bills and intermediary business. So how much do you know about commercial banks? The following is what I have compiled about what a commercial bank is. I hope you like it!

The concept of commercial banks

Commercial banks are different from central banks and investment banks. It is a financial institution with profit as its function, raising funds with various financial liabilities and operating with various financial assets. General commercial banks have no right to issue currency. Traditional commercial banks mainly focus on deposit and loan (borrowing) business, that is, borrowing deposits at lower interest rates and lending loans at higher interest rates. The deposit-loan spread is the main profit of commercial banks. The main business scope of commercial banks includes absorbing deposits from the public, enterprises and institutions, issuing loans, discounting bills and intermediary business. It is a savings institution, not an investment institution.

The main nature of commercial banks

Enterprise characteristics

For example, it must have its own capital needed for business operation, which meets the minimum capital requirements stipulated by the management department; Must pay taxes according to regulations; Self-management, self-risk, self-financing and self-discipline; Taking profit as the business purpose and development motive force.

Financial enterprise

The business objects of commercial banks are not ordinary commodities, but money and capital. The business scope of commercial banks is not in the field of production and circulation, but in the field of money and credit. Commercial banks are not enterprises directly engaged in commodity production and circulation, but enterprises that provide financial services for enterprises engaged in commodity production and circulation.

Special bank

As a special kind of bank, commercial banks are different from central banks and policy financial institutions in their business nature and business objectives. Commercial banks aim at profit, and emphasize the principles of profitability, safety and liquidity in the course of operation, and are not subject to government administrative intervention.

legal nature

Franchise system

Commercial banks are chartered by the state, and the banking license is issued by the State Council Banking Regulatory Authority. The franchise approval process is mainly as follows: first, the applicant submits an application, and then the CBRC will review it.

Formal examination should find out whether all kinds of application documents and materials are complete and conform to the legal provisions; The substantive examination shall find out whether the applicant meets all the conditions for operating commercial banking business. After passing the examination, the applicant will submit the formal application form and other documents and materials prescribed by law to the China Banking Regulatory Commission for special examination and approval, and issue a business license. It is worth mentioning that the right to examine and approve the franchise belongs to the state, and meeting all the conditions for establishing a commercial bank does not mean that it will definitely obtain a business license.

enterprise legal person

Commercial banks have the nature of enterprises and the status of legal persons. Enterprise is an economic organization, with profit as its purpose; Legal person is also an organization, but its scope includes not only enterprises, but also non-enterprise organizations and groups. Enterprise legal person can be used as a compound word and a classification of legal person. General Principles of Civil Law of China 1986 has the classification of enterprise legal person and non-enterprise legal person.

An enterprise legal person is a legal person engaged in production and operation, with the purpose of creating social wealth and expanding social accumulation, and implementing an economic accounting system. 1The Company Law of People's Republic of China (PRC) (hereinafter referred to as the Company Law) passed on February 29th, 993 divides enterprise legal persons into two categories and three forms.

The first category is limited liability companies, including limited liability companies composed of several shareholders and wholly state-owned limited liability companies;

The second type is a joint stock limited company, whose shares are publicly issued and can be listed and circulated in the form of shares. The organizational form and institutional setup of a commercial bank shall conform to the provisions of the Company Law.

Therefore, the legal nature of China Commercial Bank is a chartered enterprise legal person.

Operating principles of commercial banks

Commercial banks are financial institutions with the greatest influence, the largest number and the widest coverage in the financial market. Generally speaking, the operation of commercial banks should at least abide by the following principles:

1, principles of efficiency, safety and liquidity

As an enterprise legal person, profit is the primary purpose of commercial banks. However, the income is based on the safety and liquidity of assets. Security focuses on liquidity, which is based on efficiency. In the course of operation, commercial banks must effectively seek an effective balance among the three.

2, the principle of independent operation according to law

This is the concrete embodiment of commercial banks as enterprise legal persons, and it is also the inevitable requirement of the operation of market economic mechanism. Commercial banks conduct business according to law and are not subject to interference by any unit or individual. As an independent market entity, it has the right to handle all its own business management affairs according to law, participate in civil activities independently, and bear civil liabilities independently with all its corporate property.

3. The principle of protecting the interests of depositors

Deposits are the main source of funds for commercial banks, and depositors are the basic customers of commercial banks. As a debtor, whether a commercial bank fully respects the interests of depositors, strictly fulfills its own debts and earnestly undertakes the responsibility of protecting the interests of depositors is directly related to its own operation.

4. The principles of voluntariness, equality, honesty and credit.