Bank lending is the behavior of banks lending money to each other in order to adjust reserves. Because reserve is an important condition to ensure the solvency of banks, the state has a statutory minimum amount of reserve for banks, which is legal reserve. When banks can't reach this statutory reserve, they must find ways to turn around. One of them is to borrow money from another bank with surplus reserves. This kind of business behavior is called bank lending, which is also interbank lending. Interbank lending has a short term, usually only one year. State-owned commercial banks have the most active credit transactions.
Interbank lending refers to the financing between banks. Generally speaking, it is short-term, and it is often borrowed today and returned tomorrow. The interbank lending market first appeared in the United States. The fundamental reason for its formation lies in the implementation of the statutory deposit reserve system.
Inter-bank lending refers to the short-term lending between commercial banks to adjust funds by using the time difference, spatial difference and inter-bank difference in the financing process. As a temporary regulatory lending behavior, interbank lending has the following characteristics:
1, short term. Interbank lending has a short period and belongs to temporary financing. At present, the longest term of domestic interbank lending does not exceed 1 year, which is generally 1 day, 7 days, 14 days, 2 1 day, 1 month, 2 months, 3 months, 4 months, 6 months, 9 months.
2. The interest rate is relatively low. Generally speaking, the interbank lending rate is based on the central bank's refinancing rate and rediscount rate, and then freely agreed by both borrowers and lenders according to the tension of social funds and the relationship between supply and demand. Because both borrowers and borrowers are commercial banks or other financial institutions, their credit standing is higher than that of ordinary industrial and commercial enterprises, the lending risk is smaller and the lending period is shorter, so the interest rate level is lower.
3. The participants in interbank lending are commercial banks and other financial institutions.
Interbank lending is a kind of credit behavior. To carry out lending transactions, we must recognize and respect the rights and obligations of market participants (both parties to the transaction), strictly follow the principles of voluntary consultation, equality and mutual benefit, and independent trading, safeguard the legitimate rights and interests of market operators, form an orderly environment of equal competition, and ensure the rational flow of funds.
As for the lender, because it is temporarily idle funds of the bank, it has a certain period of time and must be recovered on schedule. For the borrower, the borrowed funds only have the right to use the funds within a certain period of time, and there is no long-term right to use the funds, nor does it change the ownership of the funds, and must be repaid in full at maturity.