The differences between the securities investment business and the loan business of commercial banks are: different liquidity; different status; different sources of funds; different management priorities and methods.

Loans should adhere to the "three checks system", "5P", and "5C" methods; securities investment should adhere to "fundamental and technical analysis, focusing on fundamentals, and focusing on growth") 5), so The forms and nature of the creditor's rights and debts reflected are different (the lending bank has a direct relationship with the borrower and is one of its few creditors. This bilateral relationship with the nature of a personal relationship is generally maintained through a legally binding loan contract; securities investment There is an indirect relationship between banks and securities issuers. This social relationship that is not affected by personal relationships is a market transaction, and it is maintained and protected by special laws and regulations.

Business. Bank securities investment business is part of the investment banking business, and the meaning of participation is to increase value and generate income. Through securities investment, banks can make full use of funds, avoid idle funds, and increase profits. Loan business is the main profitable business of commercial banks. Affected by policies.

The difference between lending institutions and banks

1. Quota: In terms of credit loans, bank quotas are generally higher than those of private small loan institutions. This is not absolute, it is mainly based on the applicant's comprehensive qualifications.

2. Interest: Bank interest is low, generally around 4%-1 cent, and the monthly interest is 10,000 yuan. For 4%, one month’s interest is 10,000*0.004=40 yuan; and lending institutions generally charge a monthly interest rate of about 1 to 2 cents. Taking a loan of 10,000 and a monthly interest of 1 cent as an example, then one month’s interest That’s 10000*0.01=100 yuan.

3. Fees: Bank loans have no other fees except interest; while some lending institutions are not very compliant. In addition to interest, there are also Some cost fees, such as guarantee fees, intermediary fees, information management fees, etc., should be calculated clearly when applying.

4. Repayment: Whether it is a bank loan or an institutional loan, they are required. Pay it back on time. If it is overdue, the bank will notify the person and the contact person via text message, and those who are seriously overdue may be prosecuted; the loan institution will be more aggressive in collecting repayment and the methods will not be legal.