Interbank lending is a temporary lending behavior between commercial banks and other financial institutions, and interbank lending is one of the most convenient lending methods for commercial banks.
1) interbank lending.
Interbank lending originated from the statutory deposit reserve system. The central bank stipulates that the reserve deposits deposited by commercial banks in the central bank cannot be used for profitable businesses such as lending and investment, and generally have no interest or low interest. In order to reduce the loss of opportunity cost, commercial banks can lend out excess reserves that exceed the statutory deposit reserve, while banks with insufficient positions or reserves need to borrow funds in time. With the development of interbank lending, the monetary central bank has gradually become a net borrower. They no longer just adjust short-term funds, but use circulating lending as a long-term source of funds to support the expansion of credit capacity, while small and medium-sized banks usually lend the remaining funds to large banks as net lenders because of the lack of credit opportunities.
2) Transaction methods and main categories of interbank lending
Lenders and borrowers can contact directly and negotiate a deal. Small banks usually use big banks as correspondent banks because of their small lending scale. These correspondent banks are usually market makers of bilateral quotations and buy and sell borrowing funds at the same time. Professional intermediaries, such as loan brokers or short-term financing companies, can also be used as a medium for both the supply and demand of funds. Although the cost of direct transaction is low, borrowing through intermediary institutions can not only reduce the cost of finding and improve the transaction efficiency, but also help to ensure the order and safety of interbank lending.
Borrowing is divided into three types according to the term:
First, overnight loans, that is, "daily loans", the two sides generally communicate by telephone, telex or internet without signing a written contract;
The second is to borrow money on a specified date, in which a certain date is predetermined as the liquidation date in the written contract, and the term is generally above 1 day, and within 1 year, and the contract cannot be dissolved or extended halfway;
Third, renew the loan, which is a relatively free-term loan method. Generally, it is repaid on the same day and the next day. However, if neither borrower nor lender issues a notice requesting recovery or return, it will be automatically extended. In the case of short financing period, in order to facilitate the transaction, both borrowers and lenders mostly borrow based on good credit status and legal norms. If there is a lack of mutual understanding or the borrower's credit is insufficient and the borrowing time is long, secured lending can be used.
3) The price and operation process of interbank lending
The interbank lending rate shall be determined by both borrowers and lenders through independent consultation according to the market capital supply and demand situation, the borrower's reputation and strength, the lending period and other factors. Interbank lending can be used as the basic interest rate for pricing other financial instruments, because its default risk is low and it can sensitively reflect the financial system or the degree of monetary tightening. London Interbank Offered Rate (LIBOR) has become a widely used benchmark interest rate in the world because of its status as an international financial center and strict and standardized formation procedures. Representative ones are new york Interbank Offered Rate (NIBOR), Hongkong Interbank Offered Rate (HIBOR) and Singapore Interbank Offered Rate (SIBOR). Interbank lending generally transfers funds through the deposit account opened by commercial banks in the central bank, and the lending bank informs the central bank to transfer the funds from its deposit account to the lending bank account. The central bank credits the account of the lending bank and debits the account of the lending bank. After the loan expires, the funds will be transferred back to the loan bank with principal and interest.
4) The formation, development and present situation of China interbank lending market.
The interbank lending activity in China started at 1984. The People's Bank of China put forward a new credit management system of "real loans and real deposits", and encouraged banks to borrow by taking advantage of the differences in the same industry, time difference and region. 1986, the State Council promulgated the Regulations on the Administration of Banks in People's Republic of China (PRC), which clearly stipulated that specialized banks could lend to each other, and the interbank lending market was officially launched, forming a tangible market dominated by Shanghai, Wuhan, Chongqing and Guangzhou. Since then, the development of interbank lending market in China has experienced a rather tortuous process. Due to the lack of effective norms, in the context of overheating and inflation, there have been serious violations in the lending market. A large number of short-term loan funds are used for real estate investment, stock speculation or industrial investment, which prolongs the loan period, raises the loan interest rate and disrupts the financial order. Moreover, there are systematic segmentation and regional segmentation in the market, which reduces the financing efficiency. In order to fundamentally correct the chaos in the interbank lending market, the People's Bank of China cancelled the interbank lending intermediaries such as the financing center set up by commercial banks and their branches in 1995.
1996 65438+ 10, relying on the electronic trading system and information services provided by the national foreign exchange trading center, the national unified interbank lending market was established in Shanghai. As a market intermediary organization, the National Interbank Funding Center provides safe, efficient, convenient and low-cost services for market participants. While strengthening the market access of trading subjects and standardizing trading behavior, the central bank lifted the upper limit of interbank lending rate on June 1996, and established a market mechanism for free bargaining between trading parties. The loan interest rate is generally higher than the deposit interest rate of the central bank and lower than the short-term loan interest rate of commercial banks. Interbank lending includes position transactions within 1~7 days and loan transactions within 120 days. "CHIBOR" published by the People's Bank of China every day is the weighted average of the interest rate of each transaction.
1996 established the national interbank lending trading system, which initially included a two-level trading network. The transaction subjects entering the primary network are the head offices of commercial banks with independent legal personality approved by the central bank (20), financing centers set up by the central bank in various provinces and cities (35) and national financial trust and investment companies, and the transactions between them are conducted through the China computer network; The secondary network consists of 35 financing centers, and the transaction subjects are trust and investment companies, urban and rural credit cooperatives, financial leasing companies, enterprise group finance companies, insurance companies and other commercial banks and branches authorized by the head office of non-bank financial institutions. The financing center accepts quotations from financial institutions in the province and trades on the spot. When the local market cannot be balanced, the price difference is balanced through the first-level network, and the trading information such as trading banks, quantity, term and interest rate is reflected on the first-level network. At the same time, the quotation of the primary network will be transmitted to the institutions in the province to keep the loan interest rates of the primary network and the secondary network roughly the same. Local financing centers are not only members of the primary network, but also organizers and participants of the secondary network, and become a bridge between the primary network and the secondary network. After February 1998, the financing center withdrew from the lending market and the secondary network was terminated. Since then, the central bank has actively promoted the construction of the interbank lending market by increasing the number of market participants and improving relevant laws and regulations, which has made the number of members of the interbank lending market increase, the types are more extensive and the transaction scale is expanding day by day. In addition to domestic financial institutions, some foreign banks are also allowed to enter the loan market.
At present, interbank lending among financial institutions in China is conducted in the intangible market. Both parties to the transaction can format quotation and inquiry through data lines and other communication methods, and conduct multiple rounds of dialogue and consultation on various transaction elements to finally confirm the transaction. Although the trading system of interbank lending in China is technically advanced, there is no authoritative bank credit rating agency in China, and the management system of mutual credit between banks is still not perfect. There are problems such as asymmetric information, high risk of credit lending and insufficient transactions.
In June, 2000, the National Inter-bank Funding Center launched the China Money Network, opened the quotation window, extended the online quotation service from the private network to the Internet, and broadened the contact bridge for market members. At the same time, the lending center has also strengthened the disclosure of credit information and related information of market members, published the background information of trading members on the special information network, helped market members to disclose financial statements, and set up directional channels to provide the latest credit information among trading members.
Step 2: Forward and paste immediately.
Discounting is the behavior that the holder gives the unexpired bill to the bank, and the bank deducts the discount interest according to the bill denomination, and then pays the face balance to the holder. Discount is actually a short-term loan from a bank. The holder gets the cash in advance, the bank advances the funds, and the loan can be recovered after the bill expires. If the debtor of the bill defaults, the bank can pursue it in the first hand. When the bank is short of funds and has difficulty in turnover, it can transfer the unexpired discounted bills to another financial institution and ask for cash discount to obtain financing. Because reposting involves many people and complicated procedures, laws and regulations generally have strict regulations on it. According to China's regulations, the maximum period of rediscount shall not exceed 6 months. Commercial bills should be based on genuine and legal commodity transactions, and the rediscount rate should be freely agreed by both parties.
3. Borrow from the Central Bank
In the financial systems of various countries, the central bank plays the role of lender of last resort. Traditionally, commercial banks' loans from the central bank can only be used to supplement the unexpected shortage of reserves and the temporary adjustment of asset structure. If commercial banks rely on borrowing from the central bank for a long time to meet the needs of profitable lending and investment, they will be punished by the central bank.
The central bank mainly provides credit support to commercial banks through direct loans or rediscounts, which is also an important means for the central bank to implement monetary policy and regulate the money supply.
1) direct loan
Commercial banks can use their own bills and national debt as collateral to apply for credit loans from the central bank. According to the loan term and purpose, the loans obtained by China Commercial Bank from the central bank are divided into the following three types:
First, the annual loan is mainly used to solve the shortage of credit funds caused by reasonable economic growth or policy loans of commercial banks, and the term is generally one to two years. In fact, this part of the loan is the basic currency allocated by the central bank to commercial banks during the year and can be occupied for a long time. At present, this part of the loan index is mastered by the head office of the People's Bank of China, and the head office of commercial banks uniformly borrows and repays from the head office of the People's Bank of China.
Second, quarterly loans mainly solve the temporary shortage of funds caused by factors such as down payment of credit funds or seasonal changes in deposits and loans. The loan term is generally two months, and the longest is no more than four months. It is also the unified loan and repayment by the head office of commercial banks from the head office of China People's Bank. The management principle of the People's Bank of China for this kind of loans is "reasonable supply, fixed term, loan repayment and recycling", that is, the People's Bank of China appropriately issues this kind of loans according to the actual situation of commercial banks' business operation and the needs of macro-financial regulation, and commercial banks can borrow and repay many times within the prescribed amount and period.
Third, position lending mainly solves the temporary shortage of funds caused by the failure of remittance, unexpected withdrawal of deposits or sudden increase in loan demand. The term of this adjustable loan is mostly within 10 days, and the longest is no more than 20 days. The amount is relatively small and the number of loans is relatively frequent. Provincial branches of commercial banks may borrow directly from provincial branches of the central bank, but they shall not exceed the quota and time limit stipulated by the head office of commercial banks.
2) rediscount
Rediscussion refers to the behavior of commercial banks to transfer unexpired discounted commercial paper to the central bank to obtain financing. In addition to reviewing commercial banks, the central bank also has strict requirements on the quality, maturity and types of bills, and adjusts the rediscount rate and rediscount limit in a timely manner according to the needs of monetary policy regulation. The Federal Reserve Bank of the United States 12 provides three types of loans to commercial banks through the discount window:
First, short-term loan adjustment helps commercial banks solve the short-term liquidity demand caused by unexpected outflow of deposits or other unexpected reasons, usually overnight loans;
The second is seasonal loans, which help small banks solve the capital needs arising from the normal seasonal changes in deposits and loans. For example, banks that mainly serve agriculture or tourism usually meet the loan conditions;
Third, deferred loans are used to help banks facing financial difficulties due to the continuous outflow of deposits. Borrowing banks need to provide collateral recognized by the discount window, including qualified commercial paper and US Treasury bonds.
China's rediscount business started late. 1986, the state-owned specialized banks officially started bill acceptance and discount business, and the People's Bank of China started rediscount business. The head office of the People's Bank of China has set up a rediscount window to accept and approve the applications for rediscount by the head offices of banks and handle relevant rediscount business. The first-tier branches of the central bank and the branches of cities under separate state planning shall set up a rediscount window to accept and approve the rediscount applications of commercial banks and their branches within the rediscount limit issued by the head office. The authorization window thinks that if necessary, it can rediscount and reauthorize some tier-two branches within its jurisdiction. The object of rediscount is commercial banks, policy banks and their branches that have opened accounts with the local central bank. At present, non-bank financial institutions are not allowed to handle rediscount business. The central bank should control the total amount of rediscount in each authorization window, and publish the catalogue of industries and products with priority support from time to time according to the needs of financial macro-control and structural adjustment. According to the relevant provisions of 1997, the period of rediscount by China's central bank is generally within 3 months, and the longest period shall not exceed 4 months. 1998 to 6 months, which is consistent with the acceptance and discount period of commercial banks' bills. The rediscount rate was originally lowered by 10% according to the refinancing rate of the same grade. After 1998, it is no longer directly linked to the refinancing rate, but an independent interest rate system.
4. Repurchase agreement
Banks can temporarily sell their highly liquid securities to other financial institutions, central banks, industrial and commercial enterprises or the government in exchange for available cash funds, and promise to buy back assets at an agreed price on a specified date after a certain period of time. The essence of repurchase agreement is secured short-term financing. The repurchase rate depends on the quality of collateral, the repurchase period and the delivery method, and is generally lower than the unsecured interbank lending rate. The repurchase agreement can be an overnight repurchase, an intermittent repurchase for several months, or a renewable agreement that is automatically extended. In the American market, although the repurchase agreement is generally at least a large wholesale transaction of $6.5438+0 million, in recent years, there have also been retail transactions below $6.5438+0 million.
Repurchase agreement provides an effective financing method for borrowing banks. Banks don't have to give up holding high-quality bond assets when the market is in a downturn because they are eager to realize cash. Because the repurchase price is agreed, the bank can also avoid the loss caused by the rising market price when repurchasing securities, and the interest income of securities will still be owned by the bank within the validity period of the agreement. Although the repurchase agreement has high quality collateral, it is not completely without default risk. If the securities price falls after the repurchase transaction, the value of collateral owned by the reverse repurchase party will be lower than the loan value; If the price of securities rises, the buyer will worry about the recovery of collateral, because its market value is higher than the loan value at this time. In this regard, the repurchase agreement can be designed more skillfully. One way is that the loan amount is less than the market value of securities, providing a certain buffer for lenders when the price of securities falls. The part of the securities whose market value is higher than the loan value is equivalent to "deposit".
China's national debt repurchase transaction was gradually launched after 1993. Initially, the repurchase of government bonds took the form of over-the-counter transactions and concentrated in local securities trading centers. Since 1995, the bond repurchase transactions of Shanghai Stock Exchange and Shenzhen Stock Exchange have started to grow rapidly. 1997 the people's bank of China issued the interim provisions on inter-bank bond repurchase transactions and the provisions on prohibiting bank funds from illegally flowing into the stock market, which divided the repurchase market into two independent markets: one is the national debt repurchase market conducted through exchanges, in which brokers, companies and individual investors participate; One is the bond repurchase market, which is mainly participated by banks and other financial institutions through the national interbank lending market. At present, the trading objects of bond repurchase are mainly government bonds and policy financial bonds, and the contract term is the shortest 1 day and the longest 1 year. Because of its higher security than credit loans, repurchase has become the most active transaction in the interbank market. In September 2000, institutional participants in the national inter-bank bond market signed the Bond Repurchase Master Agreement, which, together with the bond repurchase contract, constitutes a complete contract for repurchase transactions, so that market participants have the same rules of the game, which is of great significance for standardizing market operation, controlling settlement risks and promoting active transactions.
5. Large negotiable certificates of deposit
Large negotiable certificates of deposit (CDs) (sometimes called certificates of deposit and negotiable certificates of deposit) are negotiable certificates of deposit issued by banks to record a fixed amount, term and interest rate, which was initiated by Citibank in the United States. At the end of 1950s, the interest rate in American money market kept rising, while the interest rate on bank deposits was restricted by the Federal Reserve Q, so it was impossible to adopt competitive interest rate, which limited the ability of banks to raise funds. In order to avoid supervision, with the support of securities firms, Citibank began to issue certificates of deposit transferable in the secondary market on 196 1. Due to the high interest rate of large negotiable certificates of deposit, and the holders of certificates of deposit can sell them in the market when they need cash, they are popular and quickly become an important investment tool for large companies, local governments and the rich. Large negotiable certificates of deposit not only provide liquidity for investors, but also have a fixed maturity date, so customers will not withdraw in advance, which also increases the stability of bank funds. After the liberalization of interest rate control, large negotiable certificates of deposit can be fixed or floating. It is of historical significance that this kind of mixed debt instrument, which has the dual nature of deposit and investment, has changed the bank from passive deposit absorption to active sales of debt products, thus leading to a major change in the bank's business philosophy.
Chinese banks started the business of large negotiable certificates of deposit from 1986, which was originally issued by Bank of Communications and Bank of China. After 1989, other banks started this business one after another. On 1989, the People's Bank of China issued the Measures for the Administration of Large Negotiable Deposit Certificates, which specified the issuer, issuer, denomination, term, interest rate, issuance method, circulation and transfer, and payment of statutory deposit reserve. Although China's large negotiable certificates of deposit are welcomed by investors because of high interest income, due to various reasons, the number of large negotiable certificates of deposit issued by banks is very limited and the secondary market is very inactive, so the main liabilities of banks have not been formed. However, with the development of financial market, China's large negotiable certificates of deposit have great development potential.
6. Commercial paper
Commercial paper is a short-term promissory note issued by reputable industrial and commercial enterprises and financial institutions, which became an important form for banks to raise funds in the late 1960s. Although the banking laws of many countries stipulate that commercial banks cannot issue commercial paper directly, western banks often use their holding companies or set up subsidiaries to issue commercial paper and use the proceeds for loans and investments. The face value of foreign commercial paper is generally set at $6,543,800+,and the face value of $5 million or $6,543,800+is more popular, with a term of 30 days to 270 days.
7. European money market borrowing
The borrowing activities of western banks in the international financial market are mostly carried out in the European currency market. The European money market is not controlled by the issuing country of the transaction currency and is less restricted by the country where the exchange is located. Taxes, interest rates, statutory deposit reserve and other aspects of the burden or restrictions are looser than in China, and it is an ideal fund-raising place for people who need huge funds. Since the late 1960s, European money market lending has become an important financing channel for commercial banks. At that time, oil prices rose, and oil exporting countries got rich income from it and deposited it in European banks. In order to compete for this considerable petrodollar, commercial banks in various countries have set up branches in European financial centers and actively participated in the capital transactions in European money markets. In the early 1970s, the offshore financial market expanded to Asia, North America and Latin America. At present, the European money market in a broad sense has long gone beyond the geographical scope of Europe, including not only the offshore markets of European financial centers such as London, Paris, Frankfurt and Luxembourg, but also the offshore markets in the Middle East, Asia, the United States, Canada and the Caribbean.
Short-term capital lending is the most important business in European money market, which is 1 day in the short term and 1 year in the long term, usually 7 days to 3 months. Generally speaking, lending activities do not need to sign a written contract or provide collateral, and transactions can be completed by telephone or telex. The loan interest rate is specifically agreed by both parties according to LIBOR, and the loan amount is generally in millions of dollars. The borrowing activities between the head office and overseas branches of multinational banks are an important channel to communicate the domestic capital market and the European currency market, and a large amount of Eurodollar funds flow to the head office through overseas branches. Banks without foreign branches can also borrow from large international banks. At this time, the inter-bank lending process of European currency is completed through the agency system. The lending bank instructs its correspondent bank to transfer the European currency loan to the corresponding account of the borrowing bank. When the loan expires, the accounting entries of the agent bank will be adjusted reversely.
Multinational banks also absorb short-term funds by issuing European currency certificates of deposit. Buyers are mainly multinational companies, non-bank financial institutions, other multinational banks and regional banks. The term of these certificates of deposit ranges from a few days to a year, and some of them exceed 1 year. Eurodollar certificates of deposit were originally fixed interest rates. In 1970s, banks began to introduce floating rate certificates of deposit to protect themselves and European currency depositors from interest rate fluctuations. Large European currency certificates of deposit issued in the interbank market are called "direct certificates of deposit" and translated into "wholesale certificates of deposit", while small European currency certificates of deposit issued to investors are called "share certificates of deposit" and translated into "sub-certificates of deposit", both of which have very active secondary sales markets. Long-term loans of commercial banks generally take the form of issuing financial bonds, that is, according to the needs of capital use projects, debt certificates with interest payment and regular repayment of principal are issued in a targeted manner to raise long-term funds. The attraction of financial bonds to investors lies in their high credit rating and low investment risk. Not only is the yield generally higher than the deposit interest rate in the same period, but it is also liquid. Financial bonds issued by banks can be divided into capital financial bonds and general financial bonds according to whether the raised funds can be included in bank capital. The main difference is that the repayment right of the former is listed after the depositor. For example, capital bills and capital bonds are subordinated bonds. In addition, because the financial bonds of commercial banks also belong to corporate bonds in a broad sense, there is no essential difference between them and ordinary industrial and commercial corporate bonds. The interest rate of financial bonds depends on the degree of capital shortage in the bond market, the credit status of borrowing banks, the total amount, currency and term of bonds issued, and is generally lower than the interest rate of similar corporate bonds. In view of the long-term characteristics of this source of funds, the bond interest rate has also become an indicator of the risk status of issuing banks, and banks in trouble have to raise interest rates or substantially increase at discount bonds.
The issuance of financial bonds is generally subject to credit rating, and the repayment ability of the issuer is evaluated by a special rating agency to provide reference for bond investors. The credit rating of a bank's international bonds is not the issuer's credit rating, but only the evaluation of the bond's solvency, so the rating of each bond issued by the same issuer is not necessarily the same. In addition, the issuance of financial bonds is also controlled by the regulatory authorities. Most countries with complete financial laws and regulations and adhering to the principle of market economy implement the registration system. Before issuing bonds, banks apply to the securities regulatory authorities for registration. As long as the relevant information provided by the bank according to law is comprehensive, true and accurate, the issuance application will automatically take effect. Countries with imperfect financial laws and regulations or strict financial control generally implement the approval system, and the application for issuing bonds by banks must be strictly examined and approved by the regulatory authorities before it can take effect. Some countries restrict the number of financial bonds issued by commercial banks. The usual practice is to stipulate that the total amount of financial bonds issued cannot exceed a certain multiple of the bank's capital.
Chinese banks began to issue financial bonds on 1985, which are divided into three types: ordinary financial bonds, progressive interest financial bonds and discounted financial bonds. The issuance of financial bonds by commercial banks shall be approved in accordance with the relevant provisions of laws and administrative regulations. So far, commercial banks in China have issued credit bonds with fixed interest rates. In the future, with the gradual formation of China's market interest rate system, it is imperative to issue floating interest rate bills.