Non-deposit liabilities refer to commercial banks borrowing funds through financial markets or directly from the central bank.
Inter-bank loan
In the course of operation, commercial banks are short of short-term funds. In addition to applying to the central bank for refinancing and rediscounting, they can mainly make up for it through interbank borrowing. Inter-bank lending is an organic part of short-term capital market. Generally speaking, the loan period is short, mostly for temporary financing. The loan interest rate is based on the rediscount rate of the central bank, which is freely agreed by both borrowers and lenders according to the tightness of the market currency and the relationship between supply and demand. Adjusting funds according to the law of value is an effective method. At present, the disadvantage is that the term is too long and the repayment due is uncertain. With the gradual development of short-term capital market, interbank lending will gradually embark on the normal track of Japanese loans and local loans, which will be more conducive to reducing the liquidity pressure of commercial banks.
2. Central Bank rediscount
When the liquidity of commercial banks is tight, they will apply to the central bank for discounting the discounted bills again. The central bank pays the balance of the bill amount after deducting the rediscount interest to the commercial banks according to the current interest rate, which is the rediscount business handled by the central bank for commercial banks. The interest rate used is called the rediscount rate. The change of the rediscount rate of the central bank is inversely proportional to the increase or decrease of commercial bank reserves, the increase or decrease of commercial bank credit scale and the increase or decrease of market money supply. Therefore, adjusting the rediscount rate has become one of the important means for the central bank to manage credit and implement monetary policy. The central bank's monetary policy will inevitably have a greater impact on the loans provided by the discount window.
3. Repurchase agreement
Repurchase agreement, also known as repurchase agreement, refers to the transaction mode in which commercial banks sign an agreement when selling financial assets such as securities, stipulating to repurchase the sold securities at the original price or agreed price after a certain period of time in order to obtain immediately available funds. Repurchase agreements usually have only one trading day. After the agreement is signed, the fund winner sells financial assets such as securities to the fund provider in exchange for immediately available funds. When the agreement expires, the immediately available funds will be used for the opposite transaction. Repurchase agreement, from the point of view of instant fund provider, is also called "repurchase agreement". The financial assets in the repurchase agreement are mainly securities.
4. European money market borrowing
In 1950s, European currency deposits originated in Western Europe, with the purpose of providing short-term liquidity for hedging swaps of major multinational banks or granting loans to large customers. Most of these international credits are in eurodollar market. London is the center of eurodollar market in the world, where British banks compete with banks from other countries for European dollar deposits. Although the European money market originated in Europe, it has spread all over the world, mainly including Bahamas, Canada, Cayman Islands, China, Hongkong, Singapore, Japan and Panama. In the past few decades, the European money market has become one of the fastest growing financial markets, mainly because it is the largest unregulated financial market in the world. Generally speaking, when a bank receives a deposit in a unit other than its own currency, the deposit is registered in the form of a European currency deposit.
5. Issue medium and long-term bonds
Issuing medium-and long-term bonds refers to the financing method that commercial banks, as issuers, directly borrow debts from currency owners by bearing bond interest. The interest cost borne by banks in issuing medium and long-term bonds is higher than that of other borrowers, which has the advantage of ensuring the stability of bank funds. However, the increase of capital cost urges commercial banks to engage in risky assets business, which usually increases the risk of bank operation. For commercial banks to issue medium and long-term bonds, all countries have their own legal restrictions. Generally speaking, western countries encourage commercial banks to issue long-term bonds, especially capital bonds; However, China has very strict restrictions on this, and the financing ratio obtained by commercial banks through issuing medium and long-term bonds is very low.