1. Credit extension refers to the act of a bank directly providing financial support to a customer, or guaranteeing a customer's credit in relevant economic activities to a third party.

2. When an enterprise or individual applies for a loan from a bank, the bank will grant a loan in a specified amount based on its financial credit status and liquidity needs, which is called credit.

3. Commercial bank credit is divided into two types: basic credit and special credit. Basic credit refers to the credit limit determined by commercial banks based on national credit policies and the basic conditions of each region and customer.

Special credit refers to the credit granted by commercial banks to special financing projects and exceeding the basic credit limit based on national policies, changes in market conditions and special needs of customers. Credit extension from a commercial bank shall require a written credit letter. The authorizer and the attorney should sign and seal the authorization letter.

Extended information:

Commercial banks shall follow the following principles in granting credit to their business functional departments and branch service areas and their customers:

(1) ) Differential credit granting should be implemented based on factors such as the level of economic development, economic and financial management capabilities, occupation and use of credit funds, and financial risk status in different regions.

(2) Different credit lines should be determined based on factors such as the business management level, asset-liability ratio, and loan repayment ability of different customers.

(3) Credit lines for various regions and customers should be adjusted in a timely manner based on the financial risks in each region and the credit changes of customers.

(4) Within the determined credit limit, the amount and actual loan amount of each loan should be specifically determined based on the actual local and customer financial needs, repayment ability, credit policy and the bank's ability to provide loans. lump sum. The credit limit is not the planned loan limit, nor the allocated loan size, but the internal control loan limit implemented by commercial banks to control regional and customer risks.

Reference: Credit-Baidu Encyclopedia