Commercial banks adopt the wrong interest rate operation of short-term borrowing and long-term lending to realize the function of financial intermediaries to act as credit intermediaries and promote financial circulation. Short-term borrowing and long-term lending means that the bank (or borrower) accepts short-term deposits from users (usually one year or less), and then lends them to enterprises for long-term investment. It takes a long time to recover the principal. Financial intermediaries play the role of credit intermediaries and promote the financing of funds.

Financial intermediary: In the operation of the national economy, the income of various actors deducts the consumption part to form savings. Savings constitute the source of investment. Whether savings can be successfully converted into investment is related to the stability and development of the economy. . In fact, savings do not spontaneously transform into investment, but require a certain medium to act as an intermediate link in the transformation. This kind of financial institution that promotes the transformation of funds from surplus to shortage is a financial intermediary. There are two main types of financial intermediaries: 1. Serving the capital market by buying and selling securities, and acting as transaction intermediaries in the direct financing process based on the capital market. 2. Absorb deposits and lend directly to lenders, who act as fund intermediaries in the indirect financing process, mainly commercial banks.