There are two modes of operation of commercial banks. One is the British model. Commercial banks mainly finance short-term commercial funds, which has the characteristics of short lending period and high liquidity. That is, borrowing deposits at a lower interest rate and lending at a higher interest rate, and the spread between deposits and loans is the main profit of commercial banks. This business model is relatively safe and reliable for banks.

The other is German, and its business is comprehensive. Commercial banks not only finance short-term commercial funds, but also finance long-term fixed capital, that is, engage in investment banking business.

Extended information:

China implements a separate business model. In order to adapt to the current characteristics of China's separate operation and the development trend of mixed operation, on December 27, 23, the sixth meeting of the tenth the NPC Standing Committee passed the "On Amending < Law of the People's Republic of China on Commercial Banks >: Decision ".

the new "commercial bank law" has revised the relevant provisions of the original commercial bank law that mixed operations are not allowed. On August 29th, 215, the 16th meeting of the National People's Congress Standing Committee (NPCSC) deliberated and adopted the Amendment to the Commercial Bank Law of the People's Republic of China (Draft), which will take effect on October 1st, 215.

This amendment makes two changes to the original Law of the People's Republic of China on Commercial Banks: First, it deletes the second item of the first paragraph of Article 39; The second is to delete the "loan-to-deposit ratio case" in Item 3 of Article 75. In particular, in the second place, the provision that the ratio of loan balance to deposit balance should not exceed 75% was deleted, and the loan-to-deposit ratio was changed from a statutory regulatory indicator to a liquidity monitoring indicator.

Reference source: Baidu Encyclopedia-Commercial Bank.