The balance ratio of current assets does not refer to a person's individual business, but the balance ratio of current assets and liabilities of all businesses of the Bank is not less than 25%.
The ratio between the balance of current assets and the balance of current liabilities of commercial banks shall not exceed 25%. Assets can be divided into current assets and long-term assets, as well as liabilities. The banking system is a high-risk and high-debt industry, which faces many risks, and liquidity risk is one of them. Liquidity risk refers to the risk of not being able to pay due debts or having no funds to increase reasonable assets.
Therefore, in order to strengthen the liquidity management of banks, the banking supervision department stipulates that the liquidity ratio shall not be less than 25%. This means that it should maintain at least 25% current assets on the basis of current liabilities to prevent bank risks caused by liquidity problems. Otherwise, banks will turn current assets into long-term assets, because the income is much higher, but the risk is also greatly increased.
According to the provisions of the Notice of the People's Bank of China on Banning Underground Banks and Combating usury, the interest rate of personal loans is determined by both borrowers and borrowers through consultation, but the interest rate determined through consultation by both parties shall not exceed four times (excluding floating) the loan interest rate of financial institutions at the same level in the same period announced by the People's Bank of China. Those who exceed the above standards should be defined as usury. The Supreme People's Court's "Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" stipulates in Article 26:
The interest rate agreed by both parties shall not exceed 24% of the annual interest rate. If the lender requires the borrower to pay interest at the agreed interest rate, the people's court shall support it. If the interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, the interest agreement in excess shall be invalid. The people's court shall support the borrower's request to the lender to return the interest paid in excess of 36% per annum.
As can be seen from the above, after the Supreme People's Court implemented the Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases on September 1 2065, the standard of usury is no longer based on whether the annual interest rate exceeds 24%, but on whether it exceeds 36%, that is to say, the annual interest rate does not exceed 36%.