Commercial banks have the following three ways to use capital:

1. loan business is the most important asset business of commercial banks, including credit loans, ordinary loan limits, overdraft loans, consumer loans, discounted bills loans, mortgage loans and loan securitization;

2. Investment business. The investment business of commercial banks refers to the activities of banks to buy securities. Investment is an important asset business of commercial banks and one of the main sources of bank income. It can be divided into domestic securities investment and international securities investment.

3. Government bonds purchased by commercial banks include government bonds, medium-term bonds and long-term bonds.

Concept:

Commercial bank, abbreviated as CB in English, is a kind of bank, whose duty is to act as a financial institution of credit intermediary through deposits, loans, remittances and savings.

The main business scope is to absorb public deposits, issue loans and discount bills. General commercial banks have no right to issue money, while traditional commercial banks mainly focus on deposits and loans.