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TheFunctionsOfCommercialBanks(I)

(2019-03-11 10:46:31)

Nowadays, the banks in financial industry already are the necessary places for public and business. We often do the business with related money and fund operation through the banks. Specially commercial banks own itself advantages to satisfy customers’ financial operation such as privacy saving and withdraw, loan and lend as business mode, financing investment of bank mode, etc.steel pipe supplier So below is the functions of commercial banks.

 TheFunctionsOfCommercialBanks(I)


Introduction of functions of commercial banks

The function of a commercial bank is determined by its nature. The concept is distinguished between a central bank and an investment bank. It is a savings institution rather than an investment institution. It has five basic functions:

 

Regulating Economy

Regulating the economy means that commercial banks adjust the shortage of funds in various sectors of society through their credit intermediary activities,6x6 square tubing and at the same time, under the guidance of the central bank's monetary policy and other countries’ macro-policies, adjust the economic structure, consumption proportion investment, industrial structure and so on. In addition, commercial banks can adjust their balance of payments through their financing activities in the international market.

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