first, the function of credit intermediary. As the "intermediary" between money lenders and borrowers, commercial banks realize capital financing and adjust the economic structure and operation process through debt business (concentrating all kinds of idle funds in society) and asset business (putting concentrated idle funds into various sectors of the national economy that need funds). This is the most basic function of commercial banks, which can best reflect their basic characteristics.
second, the function of payment intermediary. Commercial banks, as the currency custodian, cashier and payment agent of enterprises, institutions and individuals, pay on behalf of customers through deposit transfer in their accounts; Based on depositors' deposits, cash payment for depositors, etc., reduce the use of cash, save circulation costs, accelerate the settlement process and the turnover of monetary funds, and promote the expansion of reproduction. The two functions of payment intermediary and credit intermediary promote each other and constitute the overall operation of commercial banks' borrowing capital.
third, the function of credit creation. Commercial banks circulate liabilities as money, and on the basis of cheque circulation and transfer settlement, loans are converted into deposits. When deposits are not raised or not fully withdrawn, experts know the source of funds of commercial banks and form derivative deposits several times as much as the original deposits. The essence of credit creation is the creation of circulation tools, not the creation of capital.
fourth, the function of financial services. In order to adapt to economic development and scientific and technological progress, commercial banks not only open up the field of financial services, promote the expansion of asset-liability business, but also realize the organic combination of asset-liability business and financial services. Such as paying wages, providing letter of credit services, paying other fees, handling credit cards, etc. The financial service function has gradually become an important function of commercial banks.
Commercial Bank, abbreviated as CB in English, is a type of bank, whose duty is to act as a financial institution as a credit intermediary through deposits, loans, remittances and savings. The main business scope is to absorb public deposits, issue loans and discount bills. General commercial banks do not have the right to issue money, and the traditional business of commercial banks mainly focuses on deposits and loans.
main nature
enterprise characteristics
It must have its own capital required for business operation and meet the minimum capital requirements stipulated by the management department. It must pay taxes according to regulations, operate independently, take risks at its own risk, be responsible for its own profits and losses, be self-disciplined, and take profit as its business purpose and development motivation.
financial enterprises
the business object of commercial banks is not ordinary commodities, but money, capital, and the scope of business activities of commercial banks is not the field of production and circulation, but the field of monetary credit. Commercial banks are not enterprises directly engaged in commodity production and circulation, but enterprises that provide financial services for enterprises engaged in commodity production and circulation.
special banks
as a special bank, commercial banks are different from central banks and policy financial institutions in terms of business nature and business objectives. Commercial banks aim at profit, and stress the principles of profit-making, safety and liquidity in their business process, and are not subject to government administrative intervention.
Legal nature
Commercial banks are established by the state, and the banking license is issued by the the State Council Banking Regulatory Authority. First, the applicant submits an application, and then the China Banking Regulatory Commission will review it.
formal examination should find out whether all kinds of application documents and materials are complete and conform to the laws and regulations, while substantive examination should find out whether the applicant meets all the conditions for operating commercial banks. After the examination is passed, the applicant will submit other documents and materials required by the law in the formal application form to the China Banking Regulatory Commission for approval and issue a business license. It is worth mentioning that the power of approval belongs entirely to the state, and meeting all the conditions for establishing a commercial bank does not necessarily mean that the business license can be obtained.
enterprise legal person
a commercial bank has the nature of an enterprise and the status of a legal person. An enterprise is an economic organization with the purpose of making profits, and a legal person is also an organization, but its scope includes not only enterprises but also non-enterprise organizations and groups. An enterprise legal person can be treated as a compound word, and it is also a classification of legal persons. The General Principles of Civil Law of China in 1986 have the classification of enterprise legal persons and non-enterprise legal persons.
an enterprise legal person is a legal person engaged in production and management, with the purpose of creating social wealth and expanding social accumulation, and implementing the economic accounting system. The Company Law of the People's Republic of China, which was passed on December 29th, 1993, divides enterprise legal persons into two categories and three forms.
the first category is the limited liability company, which includes two forms: the limited liability company composed of several shareholders with the same investment and the wholly state-owned limited liability company.
The second category is the company limited by shares, whose shares are publicly issued and can be listed and circulated in the form of shares. The organizational form and institutional setup of commercial banks should comply with the company law.
Therefore, the legal nature of China Commercial Bank is an enterprise legal person
Legal basis:
Law of the People's Republic of China on Commercial Banks
Article 3
Commercial banks can engage in some or all of the following businesses:
(1) Absorbing public deposits;
(2) granting short-term, medium-term and long-term loans;
(3) handling domestic and international settlement;
(4) handling bill acceptance and discount;
(5) issuing financial bonds;
(6) issuing, paying and underwriting government bonds as an agent;
(7) buying and selling government bonds and financial bonds;
(8) engaging in interbank borrowing;
(9) buying and selling foreign exchange as an agent;
(1) engaging in bank card business;
(11) Providing letter of credit services and guarantees;
(12) Agency receipts and payments and insurance agency business;
(13) provide safe deposit box service;
(14) other businesses approved by the State Council banking regulatory authority.
the business scope shall be stipulated in the articles of association of the commercial bank and submitted to the banking regulatory authority of the State Council for approval.
with the approval of the people's bank of China, commercial banks can engage in foreign exchange settlement and sale.