Accounting treatment of refinancing: commercial banks set up the subject of "borrowing from the central bank" for accounting. "Borrowing from the Central Bank" is a liability account, which is used to account for all kinds of money borrowed from the Central Bank by commercial banks. When the loan occurs, credit this account; When the loan is repaid, debit this account. According to the nature of the loan, detailed accounts are set for this course. Details are as follows:

Distribution processing

When a commercial bank applies for a loan from the Central Bank, it shall submit an application for a loan from the People's Bank of China to the People's Bank of China, and prepare relevant materials. After being approved by the People's Bank of China, the loan voucher shall be filled in quintuplicate and sent to the People's Bank of China for loan formalities. After the People's Bank of China checks it correctly, it will handle the transfer and return the third loan certificate; The commercial bank receives the receipt as the notice of payment, and prepares the debit and credit summons for the transfer accordingly. For transfer, accounting entries should be compiled as follows:

Borrow: deposit money in the central bank.

Loan: borrow money from the central bank.

Return processing

When the refinancing expires, the commercial bank should take the initiative to return the loan principal and interest to the People's Bank of China. According to the loan principal and interest amount, send the repayment voucher in quadruplicate to the People's Bank for repayment procedures; The People's Bank of China will handle the transfer after the audit, and return the fourth repayment voucher and iou; When a commercial bank receives a receipt as a notice of payment and handles the transfer with a transfer summons, and takes the receipt as an attachment, it shall make the following accounting entries:

Borrow: borrow money from the central bank.

Interest expenditure-recurrent expenditure of financial enterprises

Loan: deposited in the central bank.

Refinancing explanation

Re-loan refers to the loan issued by the central bank to financial institutions to achieve the monetary policy objectives. Re-loans are directly issued by the head office of the People's Bank of China to the head office of commercial banks, which are centralized in management, statistics and overall arrangement.

Interpretation of refinancing interest rate

Refinancing interest rate is the interest rate that commercial banks lend to the central bank. The refinancing rate is one of the central bank's monetary tools. Raising the refinancing rate is a sign of the central government's tightening of monetary policy, which will reduce the national credit scale and the stock market decline, and vice versa.