As the loan is beyond the control of the bank, there is a great risk that the principal and interest cannot be recovered on time. Therefore, a strict loan system should be established on the basis of observing the Contract Law and the General Principles of Loans. Its main contents are: establishing loan relationship, loan application, pre-loan investigation, loan approval and issuance, post-loan inspection, loan recovery and extension, credit sanctions and other systems.
According to People's Republic of China (PRC) Commercial Bank Law, Chinese commercial banks can engage in the following businesses:
Absorb public deposits and issue loans; Handling domestic and overseas settlement, bill discount and issuance of financial bonds; Acting as an agent to issue, honor and underwrite government bonds and buy and sell government bonds; Engage in interbank lending; Buying and selling, acting as an agent to buy and sell foreign exchange; Providing letter of credit services and guarantees; Agency payment and insurance agency business, etc. According to the regulations, commercial banks are not allowed to engage in securities business and non-bank financial business other than government bonds.
Extended data:
Loan type:
1. According to different loan subjects, loans can be divided into three types: self-operated loans, entrusted loans and specific loans. Among them, entrusted loan means that the client provides funds, and the bank, as the trustee, handles the loan formalities according to the object, purpose, amount, term and interest rate specified by the client, and only charges the handling fee and does not bear the loan risk.
Specific loans refer to loans granted by wholly state-owned banks with the approval of the State Council after taking corresponding remedial measures for the losses that may be caused by loans.
2. According to the borrower's credit, loans can also be divided into credit loans, secured loans (secured loans, mortgage loans, pledged loans), bill discounting and other types.
3. According to the different purposes of loans, it can be divided into working capital loans, fixed assets loans, industrial loans, agricultural loans, consumer loans and commercial loans. No matter what kind of loan, all borrowers should provide guarantee, except those who are examined, evaluated and confirmed by the lender to have good credit standing and can repay the loan.
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