Loans: Loans granted by banks or other credit institutions to borrowers must be repaid within a certain period of time and interest paid. Simple understanding is to borrow money with interest. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

Loan repayment method

(1) Equal principal and interest repayment method: equal repayment every month, the sum of loan principal and interest. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same.

(2) average capital repayment method: that is, the borrower distributes the loan amount to each period (month) evenly throughout the repayment period and pays off the loan interest from the previous trading day to the repayment date. In this way, the monthly repayment amount decreases month by month.

(3) Paying interest and principal on a monthly basis: that is, the borrower repays the loan principal in one lump sum on the loan maturity date (applicable to loans with a term of less than one year (including one year)), and the loan bears interest on a daily basis, and the interest is repaid on a monthly basis.

(4) Repaying part of the loan in advance: that is, the borrower can repay part of the loan amount in advance when applying to the bank, and the general amount is an integer multiple of 1 1,000 or 1 1,000. After repayment, the lending bank will issue a new repayment plan, and the repayment amount and repayment period will change, but the repayment method will remain unchanged, and the new repayment period shall not exceed the original loan period.

(5) prepayment of all loans: that is, the borrower can repay all the loan amount in advance when applying to the bank, and the loan bank will terminate the borrower's loan at this time after repayment and handle the corresponding cancellation procedures.

(6) Pay back as you borrow: interest is calculated on a daily basis after borrowing, and interest is calculated on a daily basis. You can pay the money in one lump sum at any time without any penalty.

What is the asset business of commercial banks? What is the liability business? What do you have?

The asset business of commercial banks is mainly divided into loan business and investment business. Debt business of commercial banks is one of the most basic businesses of commercial banks, including absorbing deposits, solving capital occupation and actively borrowing funds.

Asset business of commercial banks:

The asset business of commercial banks is their capital utilization business, which is mainly divided into two categories: loan business and investment business. Asset business is also the main source of income for commercial banks. All the deposits absorbed by commercial banks can be used for loans and investments except part of the reserves.

1. Loan business of commercial banks

Loan is a kind of lending behavior that commercial banks, as lenders, provide a certain amount of monetary funds to borrowers in accordance with certain loan principles and policies under the condition of repaying principal and interest. Loan is the largest asset business of commercial banks, accounting for about 60% of all its asset business. According to different classification standards, loan business can be divided into the following categories:

First, according to the loan term, it is divided into three categories: demand loans, term loans and overdraft loans;

Second, according to the loan guarantee conditions, it can be divided into credit lending, secured lending and bill discount;

Third, it is very complicated to divide the loan according to its purpose. For example, there are industrial loans, commercial loans, agricultural loans, technology loans and consumer loans according to industries; According to specific purposes, there are working capital loans and fixed capital loans. Fourth, according to the repayment method of the loan, it can be divided into one-time repayment and installment repayment. Fifth, according to the quality of loans, there are normal loans, concern loans, subprime loans, suspicious loans and loss loans.

For any loan, the following basic procedures should be followed: loan application, loan investigation, borrower's credit evaluation, loan approval, loan contract signing and guarantee, loan issuance, loan inspection and loan recovery.

2. Securities investment business of commercial banks

The securities investment business of commercial banks is the activity that commercial banks use funds to buy securities. It is mainly a way to invest by buying and selling stocks and bonds in the securities market. The securities investment business of commercial banks has the significance of dispersing risks, maintaining liquidity, reasonably avoiding taxes and improving returns. The main targets of commercial banks' investment business are all kinds of securities, including treasury bonds, medium and long-term treasury bonds, government agency bonds, municipal bonds or local government bonds, corporate bonds, etc.

Debt business of commercial banks:

The debt business of commercial banks is the main source of funds for commercial banks. One of the most basic businesses of commercial banks includes absorbing deposits, solving capital occupation and actively borrowing funds.

1. Deposit absorption. It is the most important liability business of commercial banks and the basis for banks to engage in asset business. The earliest form of deposit was demand deposit, and later it gradually developed into time deposit and special agreed deposit. There are many kinds and ways of deposits in modern commercial banks, and innovations in deposit account setting, term and interest rate agreement, and depositor's income model are constantly emerging.

2. Settlement funds occupation. Although the development of science and technology and the wide application of computers have greatly accelerated the speed of bank settlement, due to the expansion of settlement scale, there are still a lot of short-term funds temporarily staying in bank accounts during the settlement process.

3. Take the initiative to borrow money. At first, commercial banks only used it as an emergency measure to adjust temporary funds. Later, with the affirmation of active liabilities by bank management theory and the intensification of bank competition, commercial banks pay more and more attention to borrowing funds through interbank lending, borrowing from the central bank and issuing financial bonds. After the 1970s, the proportion of funds borrowed by commercial banks in total liabilities increased greatly.

What is bank credit business?

Credit business, also known as credit assets or loan business, is the most important asset business of commercial banks. Credit is the main means of profit for commercial banks, because it can recover the principal and interest by lending, and make a profit after deducting the cost.

As the loan is beyond the control of the bank, there is a great risk that the principal and interest cannot be recovered on time. Therefore, a strict loan system should be established on the basis of observing the Contract Law and the General Principles of Loans. Its main contents are: establishing loan relationship, loan application, pre-loan investigation, loan approval and issuance, post-loan inspection, loan recovery and extension, credit sanctions and other systems.

Extended data:

Relevant requirements for credit business:

1. The loan object, that is, the customer who applies for a loan from the bank, must comply with the provisions of the General Rules for Loans, the Three Measures and One Guide, the Credit Granting Guide of Commercial Banks, the Law of Commercial Banks, and the basic requirements of this institution for the credit object. Credit institutions generally divide customers into two categories. The first category is corporate customers; The second category is natural person customers.

2. The loan amount refers to the specific credit amount granted to the borrower by credit institutions such as banks. Credit institutions should fully consider the borrower's loan demand, loan purpose, repayment ability, guarantee provided, credit status, etc.

3. The loan term refers to the loan term agreed by the borrower and the borrower in the contract according to relevant regulations. The loan term shall be determined according to the type, nature and purpose of the loan. In the loan contract, the terms of the loan term concluded by the parties must be detailed, specific, comprehensive and clear to ensure the smooth performance of the contract and prevent the occurrence of the contract.

4. The loan interest rate is the ratio of the interest amount to the principal in a certain period, which is usually expressed as a percentage. If calculated on an annual basis, it is called the annual interest rate. Interest rate is a certain reward that the currency owner gets from the borrower for temporarily transferring the right to use the currency.