the end of the day is before the banking system closes every day, which is the account settlement of the counter business and the end of the account rolling.

the beginning of the day refers to the preparatory work for starting work.

Day-to-day trading generally refers to counter account rolling

Day-to-day trading is in the morning and noon respectively

According to the complexity of business and the dependence on outlets, banking business can be divided into two parts: one part is traditional business, including general loans, simple foreign exchange trading, trade financing, etc., which is mainly supported by a large number of branch networks and business volume. In addition, there are complex businesses, such as derivative products, structured financing, leasing, introduction of strategic investors, mergers and acquisitions, etc. These are high-tech and high-profit business areas that do not depend very much on the branch network. [1]

according to the composition of its balance sheet, banking business can be mainly divided into three categories: debt business, asset business and intermediary business.

Debt business is the business that commercial banks form a source of funds, and it is an important foundation of intermediary business and assets of commercial banks. The liability business of commercial banks mainly consists of deposit business, loan business and inter-bank business. Liabilities are debts that can be measured in money and will be paid by assets or capital. Deposits and derivative deposits are the main liabilities of banks, accounting for more than 81% of the sources of funds. In addition, interbank deposits, borrowing or lending money or issuing bonds also constitute the liabilities of banks.

asset business is the business of commercial banks using funds, including loan business, securities investment business and cash asset business.

Intermediary business refers to the business that does not constitute on-balance-sheet assets of commercial banks, but generates non-interest income from on-balance-sheet liabilities, including trading business, clearing business, payment and settlement business, bank card business, agency business, custody business, guarantee business, commitment business, wealth management business and electronic banking business. [2]

Debt business editing voice

Debt business is the activity of commercial banks to raise funds needed for their daily work through external liabilities, and it is the basis of asset business and intermediary business of commercial banks, which mainly consists of self-owned capital, deposits and loans, among which deposits and loans are absorbed foreign funds, and interbank deposits, borrowing or borrowing money or issuing bonds, etc., also constitute bank liabilities. [3] Liabilities are debts that can be measured in money and will be paid by assets or capital due to credit granting. Deposits and derivative deposits are the main liabilities of banks, accounting for more than 81% of the sources of funds. In addition, interbank deposits, borrowing or lending money or issuing bonds also constitute the liabilities of banks.

own funds

the own funds of a commercial bank refer to the capital of which it has ownership. It mainly includes capital stock, reserve funds and undistributed profits. Among them, the equity capital is the share capital raised by issuing shares when the bank is established; Reserve capital, that is, provident fund, is mainly formed by after-tax profit commission, which is used to make up for operating losses; Undistributed profit refers to the part of the operating profit that has not been withdrawn from the provident fund or disposed of in accordance with the provisions of the financial system.

among all sources of credit funds of commercial banks, self-owned funds account for a small proportion, generally accounting for about 11% of the total debt business, but self-owned funds play a very important and irreplaceable role in the business activities of banks. It is the premise for commercial banks to start business and engage in banking business; Secondly, it is the material basis for the risk loss of bank assets and provides protection for bank creditors; It has once again become a material guarantee to improve the competitiveness of banks. [4]

deposit liabilities

deposit is the most important business in bank liabilities business and the main source of funds for commercial banks. Deposit absorption is the basis for the survival and development of commercial banks, accounting for more than 71% of total liabilities. "For banks, the most important thing is always deposits", Marx's assertion clearly reveals the economic status of deposit business.

The types of deposits in commercial banks can be classified according to different standards: demand deposits, time deposits, savings deposits, call deposits, etc. according to the quality of deposits; It can be divided into short-term, medium-term and long-term deposits according to their length; According to the economic sources of deposits, they can be divided into industry and commerce, agriculture, finance and interbank deposits. [4]

Borrowing liabilities

Borrowing liabilities are the activities of commercial banks to integrate funds from the central bank and borrow short-term funds from other banks through the interbank lending market by re-mortgage and rediscount of bills.

(1) borrowing from the central bank is a financing business for commercial banks to solve temporary capital needs. There are three ways to borrow from the central bank: rediscount, remortgage and refinancing.

(2) Inter-bank borrowing is an activity that commercial banks aspire to borrow short-term funds from banks or other financial institutions through inter-bank lending. There are two main uses of interbank loans: first, to make up for the shortage of statutory deposit reserve, most of these loans belong to daily lending; Second, in order to meet the demand of seasonal funds of banks, it generally needs to be carried out through the interbank lending market. Inter-bank borrowing is more flexible than borrowing from the central bank, and the procedures are simpler. [4]

Other liabilities

Other liabilities refer to the sources of funds formed by commercial banks in other ways except deposit liabilities and loan liabilities. It mainly includes: inter-bank deposit liabilities, financial bond liabilities, large negotiable certificate of deposit liabilities, buying and selling securities, occupying customers' funds, overseas liabilities, etc.

in the debt business of commercial banks, self-owned funds are the foundation, which indicates the financial strength of commercial banks; Deposit liability is its main business, which indicates the operational strength of commercial banks; Borrowing liabilities and other liabilities are important transfers and supplements of commercial banks' funds, which reflect the operational vitality of commercial banks. [4]

asset business editing voice

asset business refers to the business of commercial banks using funds, that is, the activities of commercial banks to lend or invest the absorbed funds to earn income. The profitability of commercial banks depends largely on the results of the use of funds. The asset business of commercial banks generally consists of the following components, of which loans and investments are the most important. [5]

Reserve assets

Reserve assets are the general name of various forms of payment reserves kept by banks for the withdrawal of deposits payable. Reserve assets include cash on hand, deposit reserve deposited with the central bank, deposits deposited with peers, outstanding amounts collected and cash in collection, and provision for doubtful debts. [4]

Credit assets

Credit assets refer to the asset business formed by various loans issued by banks. Loan is a credit activity of lending monetary funds at a certain interest rate and a certain period of time. It is the most important item in the asset business of commercial banks and accounts for the largest proportion in the asset business. According to the degree of protection (degree of risk), loans can be divided into credit loans, secured loans and mortgage (discount) loans. Credit loan refers to the loan issued by the bank entirely by the customer without providing collateral. A secured loan is a loan issued by a bank with the double reputation of a customer guarantor. Mortgage loan (including discount) requires customers to provide commodity substances or securities with certain value as loans for mortgage. This standard division is beneficial for banks to strengthen loan security or management. When choosing the way to issue loans, banks should determine the loan object and the degree of loan risk.

according to the term, loans can be divided into short-term, medium-term and long-term loans. Short-term loans within 1 years (inclusive); 1 (excluding)-5 years (including) is a medium-term loan; Long-term loans of more than 5 years (excluding). According to the types of loans, the main function is to help banks master the liquidity of assets and maintain an appropriate proportion of short-,medium-and long-term loans.

according to the object and purpose, loans can be divided into industrial loans, agricultural loans, science and technology loans, consumer loans, investment loans, securities loans and so on. On the one hand, this classification is conducive to arranging the loan order according to the repayment ability of the loan object, and on the other hand, it is conducive to investigating the flow direction of bank credit funds and their distribution among various departments of the national economy, thus being conducive to analyzing the bank credit structure and the national economy.

according to the quality or occupation pattern of loans, loans can be divided into normal loans, overdue loans, sluggish loans and bad loans. A normal loan means that the loan can be repaid on schedule. Overdue loan refers to a loan that exceeds the time limit stipulated in the loan contract and the bank does not agree to extend it. A sluggish loan means that it is expected that it will not be repaid for more than two years. Bad loan refers to the loan that cannot be repaid after the enterprise goes bankrupt. The purpose of this classification is to strengthen the quality management of bank loans, find out the causes of loan risks, and take measures and countermeasures. [4]

Investment business

Investment business refers to the business in which banks participate in the trading of securities and hold securities. Banks' investment in securities mainly includes:

(1) purchasing national bonds issued by the central government, which accounts for about 71% of the securities business;

(2) purchasing securities issued by local governments;

(3) purchasing various securities issued by companies (enterprises), such as stocks and bonds. This kind of business is risky and takes up a long time of capital, so the proportion of banks investing in this business is small. [4]

Lending business

The most important asset business of commercial banks

Credit lending refers to the lending based on the borrower's reputation without providing any collateral, which is a kind of capital lending. [2]

ordinary loan limit

An enterprise enters into an informal agreement with a bank to determine a loan. Within the limit, the enterprise can get loan support from the bank at any time, and the validity period of the limit generally does not exceed 91 days. For loans within the ordinary loan limit, the interest rate is floating and linked to the preferential interest rate of the bank.

overdraft lending

banks provide loans to customers by allowing them to overdraw their accounts. Providing this convenience is regarded as an "additional obligation" beyond the contract undertaken by the bank to its customers.

standby loan commitment

standby loan commitment is a more formal and legally binding agreement. A bank signs a formal contract with an enterprise, in which the bank promises to provide corresponding loans to the enterprise within a specified period and limit, and the enterprise shall provide expenses for the commitment of the bank.

consumer loans

consumer loans are loans issued to consumers for purchasing durable consumer goods or paying other expenses. When commercial banks provide such loans to customers, they should conduct various inspections.

Bill Discount Lending

Bill Discount Lending means that the customer submits the unexpired bill to the bank, and the bank deducts the interest from the discount date to the maturity date to obtain cash.

guarantee loan

guarantee loan refers to the loan guaranteed by a guarantee issued by a third party. A letter of guarantee is a contractual document with the bank to guarantee the loan for the borrower, which stipulates the rights and obligations of the bank and the guarantor.

banks can issue loans to borrowers as long as they obtain a standard form of guarantee signed by the guarantor. Therefore, the letter of guarantee is the simplest form of guarantee acceptable to banks.

loan securitization

loan securitization refers to the prime capital process in which commercial banks convert loans into securities through certain procedures. The specific way is: commercial banks will combine all kinds of loans with poor liquidity into several asset pools and sell them to professional financing companies (Special Purpose Corporation), and then the financing companies will issue asset-backed securities with these asset pools as guarantees. This kind of asset-backed securities can also be sold to investors through the securities issuance market or private placement. The funds recovered from the sale of securities can be used as a new source of funds for commercial banks to issue other loans. [4]

Intermediary business editing voice

Intermediary business refers to the business in which commercial banks collect fees for collecting, paying and other entrusted matters on behalf of customers. It is a business that banks do not need to use their own funds, rely on the advantages of business, technology, institutions, reputation and talents, and act as intermediaries to undertake payment and other entrusted matters for customers, provide various financial services and collect handling fees accordingly. Banks do not need to occupy their own funds to operate intermediary business, which is based on the bank's asset-liability credit business and can promote the development and expansion of bank credit business. [2]

Payment and settlement business

Payment and settlement business refers to the charging business related to monetary payment and fund transfer caused by the relationship between creditor's rights and debts handled by commercial banks for customers.

(1) settlement tools. The main settlement tools for settlement business include bank draft, commercial draft, cashier's check and cheque.

1. A bank draft is a bill issued by the issuing bank and unconditionally paid to the payee or holder according to the actual settlement amount when the bill is seen.

2. A commercial bill is a bill issued by the drawer and entrusted by the payer to unconditionally pay a certain amount to the payee or holder on a specified date. Commercial bills are divided into bank acceptance bills and commercial acceptance bills.

3. A cashier's check is a bill issued by a bank, which promises to unconditionally pay a certain amount to the payee or holder at sight.

4. A cheque is a bill issued by the drawer, which entrusts the bank handling cheque deposit business to unconditionally pay a certain amount to the payee or the holder at sight.

(2) settlement methods, mainly including settlement methods in the same city and settlement methods in different places.

1. Remittance business is a settlement business in which the payer entrusts the bank to remit money to a foreign payee. Remittance settlement is divided into three forms: telegraphic transfer, letter transfer and bill transfer.

2. Collection business refers to a settlement method in which a creditor or seller draws a bill to a foreign debtor or buyer in order to collect money, and entrusts a bank to collect it on his behalf.

3. the letter of credit business is a written guarantee document issued by the bank to the beneficiary according to the requirements and instructions of the applicant, which contains a certain amount and pays at the designated place within a certain period of time with the specified documents.

(3) other payment and settlement services, including fund transfer and liquidation realized by modern payment system and transfer realized by internal and external networks of banks. [6]

Bank card business

Bank card is a credit payment tool issued by authorized financial institutions (mainly commercial banks) to the society with all or part of the functions of consumer credit, transfer settlement, cash deposit and withdrawal, etc. The classification of bank card business generally includes the following categories:

(1) According to the payment method, bank card business can be divided into credit card business, quasi-credit card business and debit card business. Debit cards can be further divided into transfer cards, special cards and stored value cards.

(2) according to the different currencies of settlement, bank cards can be divided into RMB card business and foreign currency card business.

(3) according to different users, bank cards can be divided into corporate cards and personal cards.

(4) according to different carrier materials, bank cards can be divided into magnetic cards and smart cards (IC cards).

(5) according to the different credit ratings of users, bank cards can be divided into gold cards and ordinary cards.

(6) according to the circulation scope, bank cards can also be divided into international cards and regional cards.

(7) other classification methods, including commercial banks cooperating with profit-making institutions/non-profit-making institutions to issue co-branded cards/subscription cards.