Why bank credit plays a leading role in the modern credit system

First of all, bank credit has not completely replaced commercial credit, but the form of bank credit has become the main form. Commercial credit is still prevalent and used in some areas.

Secondly, the reason why bank credit can become mainstream is that banks have a wider network than ordinary commercial enterprises, and can collect more information and resources, based on this, the cost and risk of bank credit will be much less than that of commercial credit.

Extended information: The social credit system is also known as the national credit management system or the national credit system. The establishment and improvement of the social credit system is one of the important signs of the continuous maturity of China's socialist market economy.

The social credit system is based on a relatively complete system of laws and regulations; Establish and improve credit information sharing mechanisms as the core; Take the cultivation and formation of the credit service market as the driving force; supported by the continuous improvement of the competitiveness of entities in the credit service industry; A national social governance mechanism guaranteed by a strong regulatory system.

Its core role is to record the credit status of social entities, reveal the credit strengths and weaknesses of social entities, warn social entities of credit risks, and integrate the forces of the whole society to praise creditworthiness and punish untrustworthiness. It can fully mobilize the power of the market itself to purify the environment, reduce development costs, reduce development risks, and promote a culture of integrity.

It is a kind of social mechanism, which specifically acts on the market norms of a country, and it aims to establish a market environment suitable for the development of credit transactions, and ensure the transformation of a country's market economy to the direction of credit economy, that is, the healthy transformation from the market transaction mode with the original means of payment as the mainstream to the market transaction mode with credit transaction as the mainstream. Such a mechanism will establish a new kind of market rules, enable the formation of social capital, and directly ensure the maturity of a country's market economy and expand the size of a country's market.

In April 2019, the Regulations on the Supervision of the Use of Medical Security** (Draft for Comments) pointed out that the administrative department for medical security is responsible for credit management in the field of medical security nationwide and is included in the social credit system.

A sound social credit system is the premise for credit to play a role, which ensures that the credit grantor and the fiduciary follow certain rules to reach a transaction, and ensure the fairness and efficiency of economic operation. There are three functions:

1.The social credit system has a memory function and can keep records of the untrustworthy;

2.The social credit system has the function of revealing the good, punishing the evil, and improving economic efficiency;

3.The social credit system has an early warning function and can prevent untrustworthy conduct.

Because bank credit overcomes the limitations of commercial credit, and bank credit can gather floating capital in the society, beyond the boundaries of commercial capital limited to the industry.

The main forms of modern credit are:

1) Commercial credit refers to the credit provided between enterprises in the form of selling goods on credit and prepayment.

2) Bank credit refers to the credit provided by banks to businesses or individuals in the form of money.

3) National credit is the credit obtained from domestic enterprises and individuals with the state as the debtor.

4) Consumer credit refers to the credit provided by industrial and commercial enterprises, banks or other financial institutions to individual consumers to meet their monetary needs for consumption.

5) International credit refers to the form of credit provided by enterprises, economic organizations, financial institutions and international economic organizations between countries and in close contact with the international community.

6) Private credit is a lending activity between private individuals.

Answer]: Sen Chi c

In the credit system, commercial credit and bank credit are the basic forms of credit. Bank credit occupies a dominant position in the credit system, and commercial credit is the foundation of bank credit and even the entire credit system. The answer is c.

Because a lot of people's credit is reflected in bank credit, if your lending credit is good, then your credit value will be relatively high, and other aspects of credit may be more troublesome to investigate.

Enterprise credit refers to the credit activities carried out by enterprises in capital operation, fund raising, and commodity production and circulation. Enterprise credit can also be called commercial credit, which refers to the economic behavior between industrial and commercial enterprises in the transaction of commodities with the contract (contract) as the expected guarantee for the payment of monetary funds, so its material content can be the sale of goods on credit, but its core is capital operation, which is the direct credit between enterprises. Corporate credit plays a role in lubricating production and circulation in the commodity economy.

The form of credit instruments for corporate credit is mainly commercial paper.

In the enterprise credit, bank credit is also included. Bank credit is also a kind of enterprise credit, which is a credit activity with monetary capital lending as the business content and banks and other financial institutions as the main actors. Bank credit is a kind of indirect credit developed on the basis of commercial credit.

Bank credit compared to business business credit. It has the following differences: (1) Money, as a bank credit carrier, has no directional restrictions on its use and can both flow in and out.

2) Because the number and scale of financial transactions are generally relatively large, modern bank credit develops faster than corporate credit. After the emergence of bank credit, it greatly exceeded the commercial credit of enterprises in terms of scale, scope, and term, and became the most basic and dominant form of credit in the modern market economy.

There is a very close connection between bank credit and business credit. The relationship between the two can be understood as follows:

First, commercial credit is always the foundation of all credit systems.

Second, bank credit only appears after commercial credit has reached a certain stage of development. Bank credit is born and developed on the basis of the extensive development of commercial credit.

Third, the generation of bank credit in turn promotes the further development and improvement of commercial credit. Fourth, commercial credit and bank credit have their own characteristics and unique roles. The relationship between the two is mutually reinforcing, and there is no question of replacing each other.

Bank credit is credit granted by commercial banks or other financial institutions to individual businesses or consumers. In the process of selling products on credit, banks and other financial institutions provide financing support to the buyer and help the seller expand sales. Commercial banks and other financial institutions grant credit to enterprises in monetary terms, and the determination of loans and loan repayment methods is based on the credit level of enterprises.

Commercial banks will require mortgages or pledges as guarantees for enterprises that do not meet their credit standards, or guarantee companies will provide guarantees for these enterprises. The latter situation is essentially a special form of credit provided by the guarantee company to the enterprise applying for the loan.

Characteristics: Compared with commercial credit, bank credit has the following characteristics: 1Bank credit is provided in the form of money.

What banks lend out is no longer commodity capital in the process of industrial capital circulation, but temporarily idle money capital separated from the process of industrial capital circulation, which overcomes the limitation of commercial credit in terms of quantity and scale. 2.The borrowers and borrowers of bank credit are monetary capitalists and functional capitalists. Since the form of credit is money, this overcomes the limitations of commercial credit in the direction of use; 3.

At various stages of the industrial cycle, the dynamics of bank credit and industrial capital are often inconsistent.

Advantage 1Overcome business credit limitations. Upstream enterprises lend to downstream enterprises, and downstream can also lend to upstream.

It can be gathered into a large amount, or a large amount can be dispersed into a small amount. Meet the different needs of long-term, medium-term and short-term loans. 2.

Large scale, low cost and low risk. 3.Ability to create credit.

Loans are issued to enterprises, and enterprises can re-lend to other enterprises as needed.

Answer]: The main forms of modern credit are: Cover the old people of commercial credit; bank credit; national credit; consumer credit; international credit; Lease credit.

Among them, the credit deficit of banks occupies a core position in the entire economic credit system and plays a leading role.