Extended information:
Policy lender/non-commercial bank refers to a professional financial institution established by the state, which aims at implementing the state's economic policies and conducting financial business in specific fields.
it is an important content of China's financial system reform to separate policy finance from commercial finance, set up policy banks to undertake strictly defined policy business, realize the commercialization of specialized banks, develop commercial banks and vigorously develop commercial financial services to meet the needs of market economy.
policy banks engage in policy financing activities directly or indirectly in specific business areas for the purpose of not making profits, specifically to implement and cooperate with national social and economic policies or intentions, and serve as tools for the government to develop the economy, promote social progress and conduct macroeconomic management.
first, from the perspective of business purposes, policy banks do not aim at making profits, but take the implementation of national social and economic policies as their responsibility.
its main function is to provide financing for national key construction and the development of industries and regions supported by national industrial policies. Generally, it includes loans for supporting agricultural development, loans for purchasing agricultural and sideline products, loans for infrastructure and basic industries such as transportation and energy, and loans for import and export trade.
However, not aiming at profit does not mean that all policy banks are unprofitable, or they all ignore efficiency, but only from the perspective of business objectives, they do not pursue profit or profit maximization.
second, from the business scope, policy banks can't absorb demand deposits and public deposits. The main sources of funds are capital provided by the government, various borrowed funds and funds raised by issuing policy financial bonds, and most of their funds are long-term loans and capital loans.
Deposits from policy banks are not used for transfer, and loans are generally earmarked and will not be directly converted into savings deposits and time deposits.
Therefore, it will not have the functions of deposit and credit creation like commercial banks. Policy banks have their own specific service areas and do not compete with commercial banks.
it generally serves those project areas that are of great significance to national economic development and social stability, and have large investment scale, long cycle, low economic benefits and slow capital recovery, such as agricultural development, important infrastructure construction, import and export trade, small and medium-sized enterprises, economic and technological development and other fields.
thirdly, from the financing principle, policy banks have their own special financing principles. In terms of financing conditions or qualifications, it is required that the financing object must be the condition that it is not easy to obtain the required financing funds from other financial institutions, and all the funds provided are medium-and long-term credit funds. The loan interest rate is obviously lower than that of similar loans of commercial banks in the same period, and some of them are even lower than the financing cost, but the principal and interest are required to be repaid on schedule.
fourth, from the perspective of credit creation ability, policy banks generally do not participate in the process of credit creation, and their capital derivation ability is weak. Because the source of funds for policy banks is not mainly deposits, but often provided by the government, and the loans of policy banks are mainly earmarked, under normal circumstances, it will not increase the money supply.