The traditional functions of commercial banks are

The function of commercial banks is a function in terms of its own nature, emphasizing the internal performance of commercial banks. Generally, it has the following four functions.

First, the function of credit intermediary. Commercial banks, as the "intermediary" between lenders and borrowers, realize financing through debt business (concentrating all kinds of idle funds in society) and asset business (putting concentrated idle funds into various departments in the national economy that need funds), and adjust the economic structure and operation process. This is the most basic function of commercial banks, which can best reflect their basic characteristics.

Second, the payment intermediary function. As the money custodian, cashier and payment agent of enterprises, institutions and individuals, commercial banks pay on behalf of customers through the transfer of deposits in their accounts; Based on depositors' deposits and cash payments to depositors. , reduce the use of cash, save circulation costs, accelerate the settlement process and the turnover of monetary funds, and promote the expansion of reproduction. The two functions of payment intermediary and credit intermediary promote each other and constitute the overall operation of commercial banks' loan capital.

Third, the function of credit creation. Commercial banks circulate liabilities as money, and convert loans into deposits on the basis of cheque circulation and transfer settlement. When the deposit is not raised or fully withdrawn, experts know the source of funds of commercial banks, forming derivative deposits that are several times the original deposits. The essence of credit creation is the creation of circulation tools, not the creation of capital.

Fourth, the function of financial services. In order to adapt to economic development and scientific and technological progress, commercial banks should not only open up the field of financial services and promote the expansion of asset-liability business, but also realize the organic combination of asset-liability business and financial services. Such as paying wages, providing letter of credit services, paying other fees, handling credit cards, etc. The financial service function has gradually become an important function of commercial banks.

Commercial Bank, abbreviated as CB in English, is a kind of bank, whose duty is to act as a credit intermediary for financial institutions through deposits, loans, remittances and savings. The main business scope is to absorb public deposits, issue loans and discount bills. General commercial banks do not have the right to issue money, and the traditional business of commercial banks is mainly deposits and loans.

Main attributes

Enterprise characteristics

Must have its own capital required for operation, and meet the minimum capital requirements stipulated by the management department, must pay taxes according to regulations, operate independently, take risks at its own risk, be responsible for its own profits and losses, be self-disciplined, and take profit as its 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 the field of production and circulation, but the field of currency 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

Commercial banks are established by the state, and the banking license is issued by the the State Council Banking Regulatory Authority. 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 in compliance with laws and regulations, while substantive examination should find out whether the applicant meets the conditions for operating commercial banks. After passing the examination, the applicant will submit other documents and materials required by law in the formal application form to the China Banking Regulatory Commission for approval and issue a business license. It is worth mentioning that the power of examination and approval belongs entirely to the state, and meeting the conditions for establishing a commercial bank does not necessarily mean that you can get a business license.

enterprise legal person

Commercial banks have the nature of enterprises and the status of legal persons. Enterprises are profit-making economic organizations, and legal persons are also organizations, but their scope includes not only enterprises, but also non-enterprise organizations and groups. Enterprise legal person can be regarded 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 as a legal person is a legal person engaged in production and operation and implementing an economic accounting system for the purpose of creating social wealth and expanding social accumulation. 1The Company Law of People's Republic of China (PRC), which was 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 multiple shareholders with the same investment 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 an established enterprise legal person.

Legal basis:

People's Republic of China (PRC) Commercial Bank Law

essay

Commercial banks may engage in some or all of the following businesses:

(1) Absorbing public deposits;

(2) Short-term, medium-term and long-term loans;

(3) Handling domestic and international settlement;

(4) Handling bill acceptance and discount;

(5) Issuing financial bonds.

(6) Acting as an agent to issue, honor and underwrite government bonds;

(7) buying and selling government bonds and financial bonds;

(eight) engaged in interbank lending;

(9) Acting as an agent for buying and selling foreign exchange;

(ten) engaged in bank card business;

(eleven) to provide letter of credit services and guarantees;

(12) Agency payment and insurance agency business;

(thirteen) to provide safe deposit box services;

(14) Other businesses approved by the State Council Banking Regulatory Authority.

The business scope shall be stipulated in the articles of association of the commercial bank and reported to the the State Council Banking Regulatory Authority for approval.

With the approval of the People's Bank of China, commercial banks can engage in foreign exchange settlement and sale business.