The illegal inflow of credit funds refers to the illegal use or transfer of loan funds to illegal channels or personal accounts by banks or other financial institutions when issuing loans. It mainly includes using the loan funds for illegal fund-raising, false trading, stock investment, high-risk investment, underground banking and other activities, or using the funds for personal consumption, which is beyond the scope of use agreed in the loan contract.

Second, the influence of illegal inflow of credit funds.

The illegal inflow of credit funds not only damages the reputation of banks, but also brings many adverse effects to the economy and society. First of all, the illegal inflow of credit funds will increase the non-performing loan ratio of banks and endanger the safety of banks' funds. Secondly, providing funds for illegal activities increases social risks and affects social stability. Finally, the illegal inflow of credit funds will disrupt the market order and affect the healthy development of the economy.

Third, ways to prevent illegal inflow of credit funds.

In order to ensure the stability of the financial system and the normal operation of the market order, banks and regulatory agencies should take effective measures to prevent the illegal inflow of credit funds. First of all, banks should strengthen the investigation of customers and check their capital use and identity information. Secondly, banks should establish a risk prevention and control mechanism, strictly review loan applications and verify the purpose of loans. Finally, continue to strengthen supervision, severely crack down on violations, punish violators, and investigate their legal responsibilities, thus playing a deterrent role.