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BusinessModeAboutCommercialBanks(I)

(2019-03-11 10:29:57)

Banks with different business modes, particularly commercial banks own its special business modes. Throughout the world, there are two modes about commercial banks. Certainly, no matter which kinds of business modes, the main target is about loan and lend and finally gain profits from business fund participating in loaning and lending. Perhaps it is short term or long term capitals. Well, let us know about it carefully,China Steel Pipes

 BusinessModeAboutCommercialBanks(I)


Introduction About Business Modes

In terms of the development of commercial banks, there are two modes of operation of commercial banks.

 

One is the British model. Commercial banks mainly accommodate short-term commercial funds. They have the characteristics of short loan term and high liquidity. That is to say, borrowing deposits at a lower interest rate and lending loans at a higher interest rate. Steel Square Bar The interest margin between deposits and loans is the main profit of commercial banks. This operation mode is relatively safe and reliable for banks.

 

Another one is Germany mode, whose business is integrated. Commercial banks not only accommodate short-term commercial funds, but also long-term fixed capital, i.e. investment banking.

 

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