(1) Short-term bank credit.
Foreign industrial and commercial enterprises deposit or lend in the money market of western countries. The first thing to pay attention to is the interest rate convention. According to international practice, the interest calculation method of foreign currency deposits is the actual deposit days divided by 360 days; The usual practice in Britain is pound, Belgian franc and Singapore dollar. Irish pound, South African rand, etc. The calculation method is to divide the actual number of days in the annual calendar by 365 days per year; The practice in Switzerland is that the Swiss franc is calculated according to the domestic market for 30 days per month and 360 days per year.
For example, a sum of 500,000 Swiss francs was deposited in the Swiss bank from 65,438+1October 3 1 to February 28, with an annual interest rate of 7%. According to international practice, the deposit interest is 500,000× 7 %× 28/360 = 2,722 (Swiss francs).
According to Swiss convention, the deposit interest is 500,000× 7 %× 30/360 = 2,965,438+07 (Swiss francs).
This example shows that foreign industrial and commercial enterprises should pay attention to the interest rate convention when financing in western money markets.
Western countries also require their foreign industrial and commercial enterprises to make short-term deposits in their own banks in freely convertible currencies, and stipulate different amounts according to different periods. For example, in Switzerland, the deposit period is more than 3 months, the minimum amount is 65,438+000,000 Swiss francs, and the deposit period is more than 65,438+0 days, and the minimum amount is 2,000,000 Swiss francs. Deposits with an amount less than 65,438+0,000,000 Swiss francs must have a maturity of more than 65,438+0 months. The minimum amount of foreign currency deposit should be equivalent to 100000 Swiss francs, and the deposit term should be 1- 12 months.
48-hour notice deposit refers to a deposit that can be increased, decreased and withdrawn with two days' notice from time to time. The minimum amount of the deposit must be equivalent to 2 million Swiss francs.
(2) Inter-bank lending.
In the short-term credit business of banks, interbank lending business is very important. London interbank lending market is a typical lending market, and its participants are British commercial banks, clearing banks and foreign banks. London Interbank Offered Rate (LIBOR) is the basis of loan interest rate in the international financial market, that is, a certain additional interest rate is added to this interest rate. LIBOR has two prices: one is the loan interest rate and the other is the deposit interest rate. The difference between the two is generally 0.25%-0.5%. If the price quoted in the newspaper is 9%-9.25%, then 9% is the deposit interest rate and 9.25% is the loan interest rate.
After World War II, in order to manage and control credit through the central bank, western governments passed laws stipulating that banks and other financial institutions must pay a certain statutory reserve to the central bank according to a certain proportion, that is, the statutory reserve ratio, after accepting customers' deposits. This reserve is the deposit of commercial banks in the central bank, but this deposit has no interest. The central bank controls the lending capacity and credit expansion of commercial banks by changing the statutory reserve ratio. The higher the statutory reserve ratio, the smaller the loan capacity of commercial banks; On the contrary, the lower the statutory reserve ratio, the greater the lending capacity of commercial banks.
Because the central bank accepts the reserves paid by commercial banks without interest, commercial banks are unwilling to lose interest because they have excess reserves in the central bank, but the reserves of commercial banks in the central bank should not be lower than the limit stipulated by the statutory reserve ratio. Commercial banks and other financial institutions often change their assets and liabilities in the deposit and loan business, and their reserves in the central bank should also change. In one day, some commercial banks' statutory reserves in the central bank may exceed the minimum required by the statutory reserve ratio, while other commercial banks' statutory reserves in the central bank are lower than the minimum required by the statutory reserve ratio. If the central bank finds that the statutory reserve of a commercial bank is insufficient, it will immediately announce that the bank cannot participate in bill exchange. If a bank is stopped from participating in bill clearing, the checks written by its depositors cannot be deposited in other bank accounts, then the depositors of this bank have no choice but to withdraw cash from it. If the news is widely spread and depositors of this bank come to withdraw their cash and run away, the day will come when this bank will fail.
Therefore, all those banks that have insufficient statutory reserves in the central bank should not take chances and muddle through. They must immediately make up the insufficient statutory reserve with available funds on the same day. The so-called immediately available funds are also called the funds used that day: first, cash, second, borrowing from the central bank, and third, borrowing from interbank banks. Commercial banks will not keep too much cash. If the statutory reserve is not too large, cash can be deposited in the bank, and the gap is too large for cash to cope with. Commercial banks are generally reluctant to apply for loans from the central bank under the condition of insufficient legal preparation, because doing so will expose their true colors to the central bank and will only do so if they have to. The best way for banks with insufficient statutory reserves is to borrow from interbank banks, transfer part of the remaining statutory reserves of interbank banks in the central bank to their own accounts, and then transfer the part equivalent to the original loan amount to the accounts of their creditor banks when there is a surplus in their statutory reserves in the central bank.
Interbank lending is a routine business of banks, mainly overnight lending. Most of them are borrowed today and returned tomorrow. Most of them are 1 day to 3 months, and the least is 3 months to 1 year. Inter-bank lending, relying on credit to do things with each other, is generally solved by a phone call, and there is no need for tools such as contracts and bills. In Britain, the minimum amount of interbank borrowing is 250,000 pounds, and the high amount can reach millions of pounds. In interbank lending, the party short of funds can find the party with surplus funds, and the party with surplus funds can also take the initiative to find the party with shortage funds. Both parties can also find borrowers through brokers. Due to the development of modern communication equipment, borrowers and borrowers are no longer confined to the same city, but have become national transactions. After the transaction is completed, they will immediately dial into the account through the communication network of the central bank, and still dial back by telecom the next day.
Inter-bank lending is a lending business between commercial banks, but not only commercial banks, but also foreign banks, federal agencies and securities brokers have deposits in the US central bank. According to the principle of inter-bank lending, these institutions can also lend their balance in the central bank account to institutions in need of funds. Loans and repayments are also made through central bank grants. Short for certificate of deposit (CD), it refers to a negotiable certificate of deposit issued by a bank and paid by someone. The voucher contains the issued amount and interest rate, as well as the date and method of repayment. If the term of time deposit certificate exceeds 1 year, interest can be paid during this period. In new york's money market, the unit of time deposit certificate is usually USD 654.38 +00,000, and the term ranges from 30 days to 5 years or 7 years, usually 654.38+0-3 months. All payments will be made on the due date.
In essence, certificates of deposit are still time deposits of banks. But certificates of deposit are also different from deposits:
(1) Time deposits are registered and cannot be transferred in the financial market, while certificates of deposit are bearer and can be transferred in the financial market.
(2) The amount of time deposit is not fixed, from large to small, from whole to zero, while the amount of time deposit certificate is fixed, and it is a big integer, at least 6,543,800 USD, and the trading unit in the market is 6,543,800 USD.
(3) Although the time deposit has a fixed term, it can be withdrawn in advance before the maturity, but it loses its due high interest; Certificates of deposit can only be withdrawn at maturity, not in advance.
(4) Time deposits are mostly long-term; Term certificates of deposit are mostly short-term, ranging from 14 days to 1 year, less than 1 year.
(5) The interest rates of time deposits are mostly fixed; Deposit certificates have fixed interest rates and floating interest rates. Even if the interest rate is fixed, the transfer in the secondary market should be calculated according to the current market interest rate.
Negotiable certificate of deposit is a new deposit method in recent 30 years. It was first issued by Citibank in new york, USA at 196 1. At that time, the background was that the market interest rate fluctuated, and investors felt that it was convenient and flexible to deposit idle funds in the bank in the form of demand deposits, but there was no interest. Deposited in banks in the form of time deposits, the interest rate generated by bonds and commercial bills is relatively low and there is an upper limit. The time deposit cannot be transferred, so the lost interest is withdrawn in advance. Therefore, investors turn their investment direction from bank deposits to short-term bonds, commercial papers and treasury bills. For commercial banks, there is no loan without deposit. Faced with this situation, commercial banks find that there are problems in their own business methods and should carry out reforms. The traditional operation mode of commercial banks is just to manage assets. When deposits increase, they will increase loans or other forms of investment, and when funds are insufficient, they will recover loans or sell securities. There's nothing we can do about the debt, so we have to forget it. When customers come to deposit, they accept it. If the client doesn't come, just wait. Faced with new problems, commercial banks believe that this method of waiting for customers' deposits cannot adapt to the new situation and cannot just wait for deposits. If we keep waiting, we can only watch the idle funds of society flow to short-term bonds such as treasury bills.
After careful consideration, Citibank in new york has created a new way, the negotiable certificate of deposit, which has changed from waiting to actively competing for funds with other investment methods in the money market to increase deposits. Before issuing certificates of deposit, Citibank in new york first won the support of some big economic businessmen to ensure the active secondary market of certificates of deposit. Thanks to the help of some big businessmen, Citibank succeeded in issuing certificates of deposit for the first time. Subsequently, other banks immediately followed suit, and since then, certificates of deposit have become a tool for short-term financing.
Transferable certificates of deposit issued by banks are still promissory notes in bonds in nature, and banks promise to repay the principal and interest at maturity. Investors who buy certificates of deposit can sell certificates of deposit and convert them into cash when they need funds. Certificate of deposit combines the advantages of deposits and short-term securities, which brings convenience to banks and benefits to customers.
The interest rate of certificates of deposit is higher than that of similar treasury bill rate with repayment period. This difference is determined by the large credit risk of certificates of deposit, but also because the liquidity of certificates of deposit is not as strong as that of national debt, the demand for certificates of deposit in the secondary market is less, and the income of certificates of deposit has to pay more taxes. In the United States, the income from certificates of deposit is taxed by governments at all levels. Now, the difference between issuing banks also reflects the difference in deposit interest rates. In the early stage of the development of the deposit certificate market, the difference between deposit certificates was relatively small, but gradually the buyers of deposit certificates began to choose deposit certificates issued by different banks. The interest rate of certificates of deposit issued by banks with high credit rating is low, while the interest rate of certificates of deposit issued by banks with poor credit rating is high.
The interest rate of time deposit certificate is fixed. When a certificate of deposit holder sells a certificate of deposit, the actual market interest rate may be inconsistent with the interest rate agreed on the certificate of deposit, which may be higher or lower than the agreed interest rate. Buying certificates of deposit in the secondary market should be calculated according to the current interest rate. Because if he doesn't buy certificates of deposit in the secondary market, he can only buy the original certificates of deposit in the bank at the current interest rate. When the certificates of deposit bought in the secondary market expire, the bank pays interest at the agreed interest rate. For example, when transferring certificates of deposit, the market interest rate is 10%, while the deposit interest rate is 9%, and the market interest rate is higher than the agreed deposit interest rate 1%. The seller of the certificate of deposit shall supply this 1% to the buyer of the certificate of deposit. The interest from the date of issuance of the certificate of deposit to the expiration date belongs to the buyer. Since the market interest rate is higher than the agreed interest rate on the certificate of deposit, the seller of the certificate of deposit should subtract the difference between the two interest rates of the buyer of the replenishment certificate of deposit from his own interest. In other words, if the market interest rate is higher than the agreed interest rate of the certificate of deposit, the seller of the certificate of deposit will have certain losses; If the market interest rate is lower than the agreed interest rate of time deposit certificate, the buyer of time deposit certificate shall pay the difference between the two interest rates to the seller. At this time, the seller of the certificate of deposit benefited. Commercial paper refers to short-term paper without collateral. Essentially, it is a promissory note with the drawer as the drawee. The drawer promises to pay a certain amount of money to the payee at a certain time and place.
Commercial paper is the earliest credit tool, which originated from commercial credit. The appearance of commercial credit precedes the appearance of financial market. When there is no financial market, there is no circulation market for commercial paper, which can only be kept by the payee and can only be recovered when it expires. Only with banks and financial markets can the holders of commercial bills mortgage in banks, discount in the market and obtain funds in advance. In recent years, it has further developed into a simple financing tool in the financial market. Although it is called commercial paper, it is a kind of creditor's rights certificate without actual transaction of goods or services.
The main types and characteristics of commercial paper are:
(1) Short-term bills are short-term credit instruments in the money market. The shortest period is 30 days and the longest is 270 days.
(2) Only one person needs to sign a single bill when it is issued.
(3) issuing short-term liquidity financing bonds.
(4) Large bills with an integer denomination are mostly calculated in multiples of 654.38+ 10,000 yuan.
(5) Unsecured bills do not need collateral and guarantor, but only rely on corporate credit guarantee.
(6) Selling market bills to unspecified public.
(7) bills of large companies. Only those large companies with good financial position and outstanding reputation can issue commercial paper.
(8) Discounted bills are issued in the form of discount, that is, interest is deducted at the time of issuance.
The commercial paper market is basically a primary market without a secondary market. The reasons are as follows: First, the repayment period of most commercial bills is very short, 20 to 40 days. Second, when investors face serious liquidity pressure, most issuers of commercial paper are prepared to buy back commercial paper before the repayment period expires.
The interest rate of commercial paper is generally higher than the short-term national debt issued by the government, which is determined by risk, circulation and tax. The risk of commercial paper is greater than that of government bonds, so its interest rate is higher than that of government bonds. Both are commercial bills, and the interest rate issued by companies with high credit rating is low, while the interest rate issued by companies with poor credit rating is high. There is no secondary market for commercial paper, but there is a secondary market for national debt, so the interest rate of commercial paper is higher than that of national debt, and the income of commercial paper is taxed at all levels of government. In the United States, the income of national debt is only taxed in the federal government, so the interest rate of commercial paper is higher.
There is also an important relationship between commercial paper interest rate and bank preferential interest rate. Preferential interest rate is the interest rate charged by commercial banks for corporate loans with the best relationship with them. Commercial paper interest rate and bank preferential interest rate compete with each other. If the preferential interest rate of banks is higher than that of commercial paper, some large enterprises will raise funds by issuing commercial paper; On the other hand, if the preferential interest rate is lower than commercial paper, some large enterprises will borrow from banks instead of issuing commercial paper. A bank acceptance bill refers to a bill issued by the drawee and unconditionally paid by the drawee to the payee or holder on the specified maturity date. A bill of exchange is essentially entrusted securities, which is paid by the drawer on behalf of the drawee, and a promissory note is paid by the drawer himself. The difference between them is obvious.
Bank acceptance bills refer to long-term bills paid by banks and accepted by banks. "Acceptance" means that the bank, as the drawee, promises to entrust payment on the bill and undertakes the obligation to pay the face value.
Once the bank stamps the bill with the word "acceptance", the bill becomes the direct debt of the bank, and then the bank is obliged to pay cash to the holder when the bill expires.
Draft is produced with the development of international trade. In international trade, buyers and sellers are far apart, and using different currencies is not as convenient as domestic trade. There is a long process from exporter to importer. During this period, one party must provide credit to the other party, either the importer pays or the exporter sells the goods on credit. If there is no strong intermediary guarantee, importers are afraid that they will not receive the goods after payment, and exporters are afraid that they will not receive the goods after delivery, so this kind of international trade will be difficult to carry out smoothly. Later, banks participated in international trade. As intermediaries between importers and exporters, they issue letters of credit. On the one hand, they guarantee that exporters and goods will be exported. They signed drafts drawn on the bank and sent them to the bank. At the same time, they assure importers that they can receive the documents of their imported goods in time and pick up the goods at the port. The draft drawn by the exporter, if it is a sight draft, will be paid by the issuing bank immediately upon sight; If it is a time draft, the issuing bank will accept it at sight and pay it at maturity. Bank acceptance bills are produced through the settlement process of international trade.
Suppose an American importer imports a batch of goods with a price of $654.38 million from a French exporter. In order to pay, an American importer obtained a letter of credit in favor of a French exporter from an American bank. This letter of credit allows French exporters to draw drafts from this American bank.
The French exporter sends the goods and forwards the letter of credit to the French bank, which draws a draft on the American bank and sends it to the American bank. After confirmation by the Bank of America, the bill of exchange is stamped with the stamp of "acceptance", that is, a bank acceptance bill is generated.
It should be pointed out that Bank of America only guarantees payment on the due date and does not need to provide credit for such transactions.
(1) Export country-French bank provides credit. After exporting the goods, the French exporter asks the French bank to negotiate the draft against the acceptance draft, that is, pay cash and deposit the money in the French bank.
The American importer has received the goods and has short-term debts to the American accepting bank. Bank of America has both new assets (the amount of the draft that the American importer is responsible for) and new liabilities (the bank accepts the draft and pays it to the holder). At the maturity of the draft, the American bank paid 654.38 million dollars to the French bank, and the American importer paid 654.38 million dollars to the American bank. This process shows that it is French banks that provide credit.
(2) Securities companies provide credit. After the French bank accepted the negotiation of its exporter, it sold the draft to a securities company in the United States, got the US dollar and deposited it in the Bank of America. When the draft expires, the Bank of America will pay more than 654.38 million dollars to the American securities company holding the draft, and the American importer will pay the Bank of America. This process shows that American securities companies provide credit.
(3) American acceptance bank provides credit. After the French bank provides the domestic export negotiation payment, it sells the draft to the American acceptance bank, obtains the US dollar, and deposits it in the American bank. When the draft is due, the Bank of America does not need to pay for itself. American importers pay American banks. This process shows that American banks provide credit.
The main purpose of acceptance bills is to finance international commodity circulation. First, financing for domestic exporters, whose bills accepted by foreign banks can be discounted at domestic banks to directly obtain export payment. After the bill expires, the domestic bank will recover the amount contained in the bill from the foreign bank. Second, financing for domestic importers. After signing an import contract with a foreign exporter, a domestic importer may require the foreign exporter to draw a draft drawn on the domestic bank, so that the foreign exporter can deliver the goods in time. Domestic importers get bills of lading from domestic banks and pay them to domestic banks.
Bank acceptance bills are produced with international trade, so there is no primary market, but there is a secondary market. There are three kinds of people who participate in the secondary market transaction of bank acceptance bills: one is the acceptance bank that creates bank acceptance bills; The second is the broker; The third is investors. Bank acceptance bills held by acceptance banks are accepted and discounted by themselves. Most of these bills did not enter the primary market and did not circulate. Brokers mainly buy and sell on behalf of customers and collect commissions. Bank acceptance bills held by investors account for the vast majority of the total circulation in the market.
discount
Discounting means that the holder exchanges the unexpired bills for cash from the bank, and the bank pays the balance after deducting the interest (discount interest) from the bill purchase date (discount date) to the bill discount week to the holder. In essence, discount is also a form of bank loan. The difference between this method and general borrowing is that the interest is deducted from the initial principal, rather than paid at the end of the period.
Adhering to western countries is an important financing activity in the money market. The discount market does not refer to the sale of bills between banks and other financial institutions or the direct discount between banks and customers. It refers to the open discount market established by banks and ticket sellers. For example, the bills held by banks in London Discount Market are mainly bought from brokers. Ticket scalpers use their own funds or discount bills returned with notices from banks. Re-discount the discounted bills to the bank. Ticket brokers sometimes introduces buying and selling bills, forming an active discount market. The discount market in new york is divided into two parts: one is the discount of bank acceptance bills; The other is the domestic commercial paper market. The former refers to the market where discount agents and banks form acceptance bills; The latter refers to the discount market formed by bill dealers selling their commercial bills discounted for customers to banks.
The discount market is a bridge between the Bank of England and British commercial banks, and it is also a major feature of the British financial system. The discount market in London is mainly composed of nine discount companies. These nine discount companies are all members of the London Discount Market Association. The discount market plays a central role in the British monetary system. Discount companies discount bills at higher interest rates with low-interest funds they borrow. Send representatives to visit clearing banks, other banks and acceptance companies every month to borrow notices and overnight funds. On the other hand, purchase and query the bills purchased by banks, such as treasury bills, commercial bills, short-term treasury bonds, etc.
The discount company can deposit its working capital in the Bank of England, which becomes the ultimate reliance of the former.
The business activities of discount companies provide adjustment funds for banks and increase their liquidity. When the bank has surplus funds, it lends them to the discount company; When the bank is short of funds, it will recover the loan from the discount company. It is safe, convenient and profitable for banks to lend surplus funds to discount companies.
Discount companies are buyers of treasury bills, commercial bills, bank acceptance bills and certificates of deposit.
This is the most important activity of the discount company. Institutions and individuals holding the above-mentioned transferable financial assets always want someone to buy these financial assets. Discount companies usually buy these financial assets to ensure their transferability and enhance their liquidity. This is not only good for banks, but also good for customers. More importantly, it accelerates the capital turnover and promotes the development of production and exchange.
The Bank of England, the central bank of Britain, also implements its monetary policy through the discount market. If the Bank of England wants to increase the money supply, it will buy treasury bills, commercial bills, bank acceptance bills and certificates of deposit from the discount company, and the discount company will use the central bank's funds to buy the above financial assets from brokers, thus increasing the money supply in the circulation field. If the central bank wants to reduce the money supply, it will not buy the bills of discount companies. If the discount company does not have enough funds, it will also buy less tickets from ticket sellers. If bills cannot be converted into cash, the money supply in circulation will be reduced.