Deposits of financial institutions.docVIP

Deposits of financial institutions Deposits of financial institutions is obtained by absorbing a variety of deposit available funds, and of loans to various economic agents in need of funding and investment income on securities and other financial institutions to obtain, an important intermediary in the financial markets is hedging and arbitrage of the important subjects, as the national economy also plays a multi-level regulation. Three characteristics: deposits, agency payment, loans Features Source of funds, mostly savings deposits, the use of mostly long-term investments and loans The use of funds from savings institutions each interest is usually determined in the contract, will not change before the expiration. If market interest rates rise, will be subject to loss of interest Name of diverse, limited business Category: 1) Urban credit cooperatives: city artisans, small businesses were mainly composed of residents. 2) Rural Credit Cooperatives: business, agriculture, fisheries and forestry portfolio farmers to become. The use of funds: to provide short-term loans to member; to provide consumer credit ; discount notes ; There are some for securities investment. Other Business: accepting securities into money, to pay interest and dividends, small business agency, protective hosting business. Commercial bank Functions The credit intermediary. Credit intermediation of commercial banks the most basic functions, it plays in the national economy at multiple levels of regulation: the idle money into capital; to make full use of idle capital; the short-term funds into long-term funds. The payment of an intermediary. Commercial banks pay to play the role of intermediaries has two main functions: saving distribution costs; reduce the banks funding costs, expand bank sources of funds. Credit creation. Financial Services. Financial services means commercial banks use a wide range of contacts in the national economy, informed the special status and other advantages, the u