Briefly describe the functions of commercial banks

1. Commercial banks have four functions: (1) credit intermediary function; (2) payment intermediary function; (3) Credit creation function; (4) Financial service function.

1. Payment intermediary function

Use the current deposit account to handle various business activities such as currency settlement, currency receipt and payment, currency exchange and transfer deposit for customers.

2. Credit intermediary function

Through the debt business, all kinds of idle monetary funds in the society are concentrated in the bank, and through the asset business, the funds are invested in the departments that need funds, which plays an intermediary role between idle funds and capital shortage and realizes financing.

3. Credit creation function

Take advantage of its favorable conditions to absorb deposits and generate more deposits by issuing loans, thus expanding the social money supply.

4. Financial service function

Second, the company has mastered a lot of macro and market information, and has become an information center of national economy and finance, which can provide various financial services for all aspects of society.

1. The nature of commercial banks:

(1) A commercial bank is an enterprise: it aims at maximizing profits.

⑵ Commercial banks are special enterprises: their operations and contents are special; The influence of commercial banks on the whole social economy is far greater than that of ordinary industrial and commercial enterprises; Commercial banks have special responsibilities.

(3) Commercial banks are special financial enterprises: their business operations are extensive and comprehensive. Operating both "retail" and "wholesale" business, it has become a "financial department store" and a "universal bank" whose business tentacles extend to all corners of the social economy.

2. A commercial bank is the intermediary or representative of the monetary fund lender and the lender, which realizes financing and obtains interest income, and forms bank profits by using the difference between the cost of absorbing funds and the interest income and investment income of loans.

3. Commercial banks have become "big businessmen" buying and selling "capital goods". Commercial banks not only act as credit intermediaries and integrate monetary funds, but also undertake the function of monetary management.

4. Become the currency custodian, cashier and payment agent of industrial and commercial enterprises, organizations and individuals by transferring deposits, paying on behalf of customers and paying cash on behalf of customers on the basis of deposits. With the development of economy, the business environment of industrial and commercial enterprises is becoming more and more complicated, and the business competition between banks is becoming more and more fierce.

Because of the wide contact range and well-informed information, banks, especially computers, are widely used in banking business.