It is the period of funds provided directly by commercial banks to non-financial institution customers.

Credit refers to funds provided directly by commercial banks to non-financial institutional customers, or guarantees for compensation and payment responsibilities that customers may incur in relevant economic activities, including loans, trade financing, bill financing, Financial leasing, overdrafts, various advances and other on-balance sheet businesses, as well as bill acceptance, issuance of letters of credit, letters of guarantee, standby letters of credit, confirmations of letters of credit, bond issuance guarantees, loan guarantees, asset sales with recourse, and outstanding The use of irrevocable loan commitments and other off-balance sheet businesses.

The validity period of commercial bank credit is one year. During the credit implementation process, if the following circumstances occur, the commercial bank shall adjust or cancel the credit limit: major financial risks occur or are latent in the credited area; major operations occur in the credited enterprise Difficulties and risks; major changes in the market; major adjustments in monetary policy; major changes in corporate mechanisms (including splits, mergers, terminations, etc.); decline in corporate repayment credit and increased loan risks; other circumstances that should change the credit limit.

Extended information:

Relevant requirements for credit extension:

1. The functional departments and branches of commercial banks shall be responsible to their head offices, and commercial banks shall be responsible to the People's Bank of China. The jurisdictional bank shall submit reports on credit implementation and risk status every quarter. Any temporary violations of authorization or major risks should be reported promptly and quickly.

2. The audit and supervision departments of commercial banks should regard it as an important responsibility to inspect and supervise the implementation of the credit system by business functional departments and branches, and have the right to provide opinions on the adjustment of authorization.

3. The legal department of a commercial bank should be responsible for the legal affairs of the bank's credit granting. Commercial banks must conduct a comprehensive inspection of the implementation of their internal authorization at least once a year and report the inspection results to the People's Bank of China.

Baidu Encyclopedia-Credit