Of the main business of commercial banks

General commercial banks do not have the right to issue currency , the traditional business of commercial banks are mainly concentrated in operating deposit and loan business:

1. Deposits are the most important business in the liabilities business of the bank, and are the main source of funds for commercial banks. Deposit taking is the basis for the survival and development of commercial banks, accounting for more than 70% of the total liabilities. Only through the deposit business can commercial banks concentrate their funds in order to realize the asset business such as lending and investment, therefore, continuously expanding the deposit business of commercial banks is the main way to expand the scale of lending and investment. The business volume of commercial bank deposits determines the business volume of lending, which directly determines the future spread income of commercial banks, thus determining the economic efficiency of commercial banks.

2, commercial bank loans is a bank lending period of not more than one year, lending for merchants and import and export traders of a loan. Credit is the main profit-making means of commercial banks. Loan business is the most important asset business of commercial banks, through lending to recover the principal and interest, after deducting the cost of profit. As lending out of the bank's control, the risk of not being able to recover the principal and interest on time is greater, so the credit should be in compliance with the contract law and the general rules of the loan, based on the establishment of a strict loan system, the main contents of which are: the establishment of the loan relationship, the loan application, pre-loan investigations, loan approvals and disbursements, post-loan inspection, loan recovery and extension, credit sanctions and other systems.

Legal basis:

"The People's Republic of China*** and the State Law on Commercial Banks"

Article 36 of the commercial bank loans, the borrower shall provide guarantee. The commercial bank shall strictly examine the repayment ability of the guarantor, the ownership and value of the collateral and pledge, and the feasibility of realizing the mortgage and pledge. After the commercial bank review, assessment, confirmed that the borrower's creditworthiness, can repay the loan, may not provide security.

Article 37 of the commercial bank loans, shall enter into a written contract with the borrower. The contract shall agree on the type of loan, the purpose of borrowing, the amount, interest rate, repayment period, repayment method, default liability and other matters that both parties believe need to be agreed.

Article 38 commercial banks shall determine the interest rate on loans in accordance with the upper and lower limits of the People's Bank of China's lending rates.

Article 39 Loans by commercial banks shall be subject to the following provisions on the management of asset-liability ratios:

(1) the capital adequacy ratio shall not be less than eight percent;

(2) the ratio of the balance of liquid assets to the balance of liquid liabilities shall not be less than twenty-five percent;

(3) the ratio of the balance of loans to the same borrower to the balance of capital of the commercial bank shall not exceed ten percent;

(4) the ratio of the balance of loans to the balance of capital of the commercial bank shall not exceed ten percent;

(5) the ratio of the balance of loans to the balance of capital of the commercial bank shall not exceed ten percent. (c) The ratio of the balance of loans to the same borrower to the capital balance of the commercial bank shall not exceed ten percent;

(d) Other provisions of the Banking Regulatory Authority of the State Council on the management of asset-liability ratios.

Commercial banks established before the enforcement of this Law whose asset-liability ratios do not comply with the provisions of the preceding paragraph after the enforcement of this Law shall comply with the provisions of the preceding paragraph within a certain period of time. The specific measures shall be prescribed by the State Council.