Functions of commercial banks?

1, credit intermediary function. Commercial banks absorb deposits, the concentration of idle funds in society, and through the issuance of loans, the concentration of funds lent to the capital shortage sector, playing the role of money into capital. Is the most basic function of commercial banks;

2, payment intermediary function. Commercial banks accept the entrustment of enterprises, for their technical business related to the movement of money, such as exchange, non-cash settlement, etc., so that the bank has become the general accountant and cashier of the enterprise, and become the general ledger of the society;

3, credit creation function. Expansion of credit (deposits)

Nature of commercial banks is a profit-oriented, mainly in the form of deposit-taking and loan-granting for industrial and commercial enterprises or individuals to provide financing services, and settlement business financial enterprises. Commercial banks, also known as deposit money banks, to operate industrial and commercial deposits, lending as the main business, to provide customers with a variety of financial services; is the most central part of the financial institutions system, the number of institutions, business penetration of a wide range of total assets than the major.

Comparing with general industrial and commercial enterprises, commercial banks are financial enterprises, undertaking the function of capital financing; comparing with the central bank and policy banks, commercial banks are profit-oriented enterprises, its business goal is to maximize profits, the central bank and policy banks generally do not aim at profit-making; comparing with non-banking financial institutions, non-banking financial institutions have a very narrow scope of operation, operating incomplete The credit business, or not to bank credit to finance funds; commercial banks have a wide range of business scope, a complete range of business, is the only financial institutions that can absorb demand deposits for the public, the business includes a variety of deadlines and different types of deposits and loans, but also includes securities investment, import and export credits, international settlements, and a variety of other financial services.