What are the functions and roles of a commercial bank?

The functions of commercial banks are functions by their very nature, emphasizing the internal performance of commercial banks in their role. It has the following four functions.

First, the function of credit intermediary. As the "intermediaries" between the borrowers and lenders of money, commercial banks realize the financing of capital and regulate the economic structure and operation process through debt business (concentration of all kinds of idle funds in society) and asset business (putting concentrated idle funds into various sectors of the national economy that need funds). This is the most basic function of a commercial bank and best reflects its basic characteristics.

Second, the payment intermediary function. Commercial banks, as the custodians, cashiers and payers of the currencies of enterprises, institutions and individuals, transfer the deposits on the account and pay the customers; Based on depositors' deposits, cash payments are made for depositors, etc., to reduce the use of cash, save circulation costs, accelerate the settlement process and monetary capital turnover, and promote the expansion of reproduction. The two functions of payment intermediary and credit intermediary promote each other and constitute the overall operation of the lending capital of commercial banks.

Third, the function of credit creation. Commercial banks circulate liabilities as currency, and on the basis of check circulation and transfer settlement, loans are converted into deposits, and when deposits are not withdrawn or fully withdrawn, the funds of commercial banks are expertly raised, forming derivative deposits that are several times the original deposits. The essence of credit creation is the creation of circulation instruments, not the creation of capital.

Clause. Fourth, financial services functions. In order to adapt to economic development and scientific and technological progress, commercial banks have not only developed the field of financial services, but also promoted the expansion of asset-liability business, so as to realize the organic integration of asset-liability business and financial services.

Such as payroll, letter of credit services, payment of other fees, credit card application, etc. The financial service function has gradually become an important function of commercial banks.

1. Commercial banks have four functions: credit intermediary functions; payment intermediary functions; credit creation functions; Financial Services Functions.

1.Payment intermediary features.

The current deposit account is used to handle various business activities such as currency settlement, currency receipt and payment, currency exchange, transfer and deposit for customers.

2.Credit intermediary function.

Through the debt business, all kinds of idle monetary funds in the society.

Concentrate in the bank, through the asset business, the funds are invested in the departments that need funds, and play an intermediary role between idle funds and capital shortages, so as to achieve financial integration.

3.Credit creation function.

4.Financial services features.

Second, the company has mastered a large amount of macro and market information, and has become a national economy.

and financial information center, which can provide a variety of financial services for all aspects of society.

Extended Information:1Nature of Commercial Bank:

A commercial bank is a kind of enterprise: it takes the pursuit of maximum profits as its goal.

A commercial bank is a special kind of enterprise: the operation and content of a commercial bank are special; The impact of commercial banks on the entire social economy is much greater than that of ordinary industrial and commercial enterprises; Commercial banks have special responsibilities.

Commercial banks are a special kind of financial enterprises: the business operations of commercial banks have a strong breadth and comprehensiveness, they operate both "retail" business and "wholesale" business, and have become a "financial department store" and "universal bank" whose business tentacles extend to all corners of the social economy.

2.Commercial banks are the intermediaries or representatives of lenders and lenders of monetary funds, realize financial integration, obtain interest income, and use the cost of absorbing funds and the interest income and investment income of loans.

The difference between the formation of bank profits.

3.Commercial banks have become "big businessmen" who buy and sell "capital goods". In addition to acting as credit intermediaries and integrating monetary funds, commercial banks also assume the function of monetary management.

4.Through the transfer of deposits in the account, payment on behalf of customers, and cash payment for customers on the basis of deposits, etc., it becomes the currency custodian, cashier, and payment ** of industrial and commercial enterprises, groups, and individuals. With the development of the economy, the business environment of industrial and commercial enterprises is becoming more and more complex, and the business competition between banks is becoming more and more fierce.

5.Due to the wide range of contacts and the well-informed, banks, especially computers, are in the banking business.

in a wide range of applications.

The functions of commercial banks are different from those of ordinary enterprises and other financial institutions, and they mainly include: First, credit intermediaries. Through the asset and liability business, commercial banks act as intermediaries between those who need funds and those who need funds, so as to realize the financing and flow of monetary funds.

This is the most basic function of a commercial bank. Second, payment intermediaries. Commercial banks use demand deposit accounts to handle currency receipt and payment, currency settlement, and deposit transfer for customers.

Third, credit creation. On the basis of credit intermediaries and payment intermediaries, commercial banks can create credit instruments and derivative deposits. This is a special function of commercial banks.

Commercial banks mainly have five basic functions:

1. Regulate the economy.

Economic regulation refers to the adjustment of the economic structure, the proportion of investment in consumption, and the industrial structure under the guidance of the central bank's monetary policy and the macroeconomic policies of other countries. In addition, commercial banks can also regulate their balance of payments through their financing activities in the international market.

2. Credit creation.

On the basis of the functions of credit intermediary and payment intermediary, commercial banks have created the function of credit creation.

Therefore, commercial banks are able to absorb all kinds of deposits, and use the deposits they absorb to issue loans, and on the basis of cheque circulation and transfer settlement, the loans are derived into deposits, and on the basis of such deposits do not withdraw cash or do not fully withdraw cash, the funds of commercial banks are increased. Finally, in the entire banking system, derivative deposits are formed that are several times the original deposit.

3. Credit intermediaries.

The essence of this function is to concentrate all kinds of idle money in society into the banks through the bank's liability business, and then invest it in all sectors of the economy through the asset business. Commercial banks act as intermediaries or representatives of lenders and borrowers of monetary capital, realize the financing of capital, and obtain profit income from the difference between the cost of absorbing funds and the interest income from loans issued and investment income, thus forming bank profits.

4. Payment intermediaries.

In addition to acting as credit intermediaries and financing monetary capital, commercial banks also perform the functions of monetary management. Through the transfer of deposits on the account, the customer pays, and on the basis of the deposit, the customer pays cash, etc., and becomes the currency custodian, cashier and payer of industrial and commercial enterprises, groups and individuals.

5. Financial services are burning.

Through the development of financial services, commercial banks have further promoted the expansion of their asset-liability business, combined their asset-liability business with financial services, and opened up new business areas. In modern economic life, financial services have become an important function of commercial banks.

1. Credit intermediary functions. Commercial banks absorb deposits, concentrate idle funds in society, and lend the concentrated funds to departments with a shortage of funds through the issuance of loans, thus playing the role of turning money into capital. It is the most basic function of a commercial bank;

2. Payment intermediary function. Commercial banks accept the entrustment of enterprises to handle technical business related to monetary movements, such as exchange and non-cash settlement, so that the bank can become the chief accountant and cashier of the enterprise and the general ledger of the society;

3. Credit creation function. Expansion of credit (deposits).

Nature of Commercial Bank:It is a financial enterprise that provides financing services for industrial and commercial enterprises or individuals and handles settlement business for the purpose of profit, mainly in the form of absorbing deposits and issuing loans. Commercial banks, also known as deposit money banks, are mainly engaged in industrial and commercial deposits and loans, and provide customers with a variety of financial services. It is the most core part of the financial institution system, with a large number of institutions, wide business penetration and a significant proportion of total assets.

Compared with general industrial and commercial enterprises, commercial banks are financial enterprises and undertake the function of financial integration; Compared with ** banks and policy banks, commercial banks are profit-oriented enterprises, and their business objectives are to maximize profits. Compared with non-bank financial institutions, non-bank financial institutions have a very narrow business scope, operate incomplete credit business, or do not finance funds in the form of bank credit; Commercial banks have a wide range of business scope, complete business types, is the only financial institution that can absorb demand deposits from the public, business includes various maturities and different types of deposit and loan business, but also includes investment, import and export credit, international settlement and other financial services.