The so-called credit asset pledge refinancing means that banks can pledge their existing credit assets (that is, loans that have been released) to the central bank to obtain new funds, which is essentially credit plus leverage. Many people think this explanation is quite official. To put it simply, when a commercial bank lends money, it gives the loan to the central bank, and when the central bank accepts these loans, the commercial bank will have a lot of cash. Of course, the central bank can set a standard to ease the continuous flow of funds to commercial banks. (The pilot project of re-lending by pledge of credit assets is conducive to enhancing the liquidity of credit assets)

If you feel that the explanation about the pledge and refinancing of credit assets is still profound, give an example and describe it vividly with figures. For example, I can borrow 2 million yuan first, and then I can borrow 2 million yuan after mortgage, while the previous 2 million yuan can be mortgaged to the central bank, and the central bank will lend you 2 million yuan. Of course, you won't get 2 million yuan for the whole process, which requires a discount.