The function of resource allocation refers to promoting the flow of monetary funds to regions, departments and enterprises with the greatest development potential and investors' greatest income;
The function of economic adjustment refers to the influence of the change of money supply, the flow and allocation of money on the economy.
Pricing function: it has the function of determining important price signals such as interest rate, exchange rate and securities price, and guides resource allocation by adjusting prices;
Risk diversification and management function: participants transfer or accept risks by buying and selling financial assets, and use portfolio investment to diversify the unsystematic risks faced by a single financial asset.
Financial markets are divided into money markets and capital markets according to the term of financial instruments, and cash markets and futures markets according to whether they are delivered immediately after trading;
According to the transaction stage: distribution and circulation market;
According to trading places: on-site and off-site trading markets.
Bond repurchase is a short-term financial tool, which belongs to the inter-bank bond repurchase market in the money market.
Bank loan is an indirect financing tool.
Treasury bonds, corporate bonds and company stocks are all direct financing tools.
The operational goal of China's monetary policy is the base currency, and the intermediate goal is the money supply.
High-energy currency = base currency;
The cash in circulation is M0, while the general money supply is M2.
The narrow money supply is M 1.
The base currency includes cash currency issued by the central bank and deposits absorbed by financial institutions.
M0 is cash in circulation. M2 is the broad money supply.
Three magic weapons of monetary policy: open market business, deposit reserve and rediscount.
The three pillars of the New Capital Accord: minimum capital requirements, external supervision and market constraints;
Three risks of banks: market risk, credit risk and operational risk.
The interest rate announced by the People's Bank of China is the official interest rate. A 3.96% interest rate means a fixed interest rate, and a three-year interest rate means a long-term interest rate.
Fixed exchange rate refers to the exchange rate set and announced by the government, which can only float within a certain range.
Floating exchange rate refers to the exchange rate determined by the relationship between market supply and demand, and its fluctuation is basically free.
The sale of securities and the use of open market business by the central bank bring about the reduction of excess deposit reserve, the reduction of money supply and the increase of market interest rate.
Raising the deposit reserve ratio, raising the rediscount rate and reducing the window guidance of loan issuance will reduce the money supply.
Economic growth refers to the growth of economic output and residents' income of a country (or region) in a specific period.
Price stability means keeping the overall price level generally stable and avoiding high inflation.
Producer price level or consumer price level is only one aspect. Gross domestic product is an indicator to measure economic growth.
Consumer price index refers to the fluctuation range of a group of commodity prices related to residents' lives.
Producer price index refers to the fluctuation range of wholesale prices of a group of ex-factory products, and the balance of payments is measured by exports and imports.
Promoting function of financial market: it can directly promote the business development and management of commercial banks in many aspects, and provide reference standards for customer evaluation and risk of commercial banks. Money market and capital market can provide a large number of risk management tools for commercial banks, transfer risks through normal transactions in the market, promote the improvement of enterprise management level, create and cultivate good quality customers for banks, contribute to financial stability and lay a good foundation for their development.
Challenge: The listing of banks will lead to the short-term behavior of bank managers, amplify the risk events of commercial banks, and the development of capital market will reduce the source of funds and the loss of high-quality customers.
The balance of payments includes current account and capital account. Current account includes: trade balance, labor balance (transportation and tourism) and unilateral transfer (remittance and donation). The capital account reflects the implementation of a country's utilization of foreign capital and repayment of principal, including direct investment, government and bank loans and corporate credit.
Financial instruments with a maturity of less than one year (including one year) belong to the money market, and financial instruments traded in the capital market have a maturity of more than one year. The spot market is the one-day trading market, the one-day delivery market and the next-day or next-day delivery market, and the financial instruments in the futures market are delivered at the agreed time after trading.
The money market includes: interbank lending market, interbank bond repurchase market and bill market; Capital market includes: stock market, bond market, foreign exchange market, futures market and insurance market, which belong to other markets besides money market and capital market.
M0 is the cash in circulation, that is, the cash circulating outside the banking system. Resident demand deposits and resident time deposits are included in the money supply M2. Residents' investment in financial assets includes not only cash and various deposits, but also stocks and bonds.
The composition of the base currency: deposit reserve, cash in circulation and cash on hand in financial institutions deposited in the People's Bank of China.
Deposit reserve includes not only cash on hand in commercial banks, but also reserve deposits deposited in the central bank.
Rediscount policy: Adjust the rediscount rate and specify the types of rediscount bills. Re-lending is also a monetary policy tool. Adjusting the statutory deposit reserve ratio is a deposit reserve tool.
Direct financing instruments: national debt, corporate bonds, commercial paper, company stocks, etc. Issued by the government and enterprises. Loans from banks by enterprises and individuals are indirect financing methods.
Indirect financing instruments: bank bonds, bank acceptance bills, negotiable certificates of deposit and life insurance policies.
Money market funds are mainly used for turnover and short-term investment, with short repayment period, strong liquidity, low risk and low yield.
Convertible bond is a special kind of corporate bond, which can be converted into common stock at a specific time and under specific conditions. It has the characteristics of both bonds and stocks.
Monetary policy goal: "keep the currency stable and promote economic growth"
The capital market is a long-term financing market. Most of the funds raised are used for investment in fixed assets, and the liquidity is relatively low, so it is impossible to help banks integrate the required funds in time when there is a liquidity shortage.
After the reform of RMB exchange rate formation mechanism, RMB exchange rate is no longer pegged to a single dollar, but several major currencies are selected and given corresponding weights to form a currency basket. So far, the US dollar is one of the major currencies, so the RMB exchange rate is not independent of the US dollar.
The adjustment of the deposit reserve ratio will affect the excess deposit reserve that banks can directly use, thus affecting their available funds. Interest rate adjustment will affect the interest paid by bank deposits and the interest charged by loans, that is, the bank's deposit cost and loan income.
Deposits are the main source of funds for banks. It is the bank's liabilities to depositors rather than investment business. The main risk exposure and capital utilization of banks is loans.
Foreign currency deposits are divided into current account foreign exchange accounts and capital account foreign exchange accounts according to account types; According to customer types: foreign exchange deposits and corporate foreign exchange deposits; According to the deposit period: current and fixed term.
Fixed-life two stools have no storage period and are not fixed.
Ordinary accounts can handle transfer settlement and loan-related businesses. Ordinary families can handle cash deposits, but they can't handle cash withdrawals.
There are nine kinds of foreign currency deposits opened by Chinese banks: the United States, Europe, Japan, Hong Kong, Swiss francs, Canadian dollars, British dollars, Singapore dollars and Australian dollars (these three foreign currencies are indirectly priced).
The foreign exchange account of unit capital account includes: special account for loans (foreign debts and refinancing), special account for loan repayment, special account for issuing foreign currency stocks, special account for B-share trading, etc. Personal foreign exchange accounts are divided into domestic accounts and overseas accounts according to the main categories, and are divided into foreign exchange settlement accounts, capital accounts and foreign exchange savings accounts according to the nature of accounts; Foreign exchange savings accounts can only be used for foreign exchange storage and cannot be transferred; The settlement account is used for transfer, remittance and fund settlement payment; Cash and cash accounts are no longer distinguished, and non-operating income and expenditure are managed through foreign exchange savings accounts.
The quota of current account foreign exchange accounts of domestic institutions is uniformly approved in US dollars.
Loans are divided into short-term, medium-term and long-term loans by term. According to customer types, it is divided into personal loans and corporate loans.
Concern: Although it is able to repay the principal and interest at present, some loans may have an adverse impact on repayment. Loss category: after taking all possible measures or all necessary legal procedures, the principal and interest cannot be recovered, or only a small part can be recovered; Suspicious category: the borrower can't repay the principal and interest in full, even if the guarantee is implemented, it will definitely cause heavy losses; Sub-category: there are obvious problems in repayment ability, and it is impossible to repay in full by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses.
Personal loans include: housing, car consumption, credit card overdraft, student loans; Corporate loans include short-term loans (including working capital loans, revolving loans, corporate account overdrafts), medium-and long-term loans (project loans, real estate development loans, syndicated loans) and trade financing loans (letters of credit, bills of exchange, factoring, deferred payment).
In some projects, the bank will give a certain grace period, and only the interest needs to be repaid at the initial stage of the loan, and there is no need to repay the principal. The project loan is a medium-and long-term loan, and the repayment method can be the average capital repayment method, or the principal can be repaid once after the interest is settled on schedule. In practice, the interest is settled quarterly and the principal is repaid in installments.
Trade financing refers to short-term financing or credit facilities provided by banks to importers or exporters related to import and export trade settlement.
Capital business is the most important channel for capital utilization besides loans. Settlement business and agency business belong to intermediate business and generally do not occupy bank funds.
The main risk of capital business is market risk, but also credit risk and operational risk.
Short-term capital trading business refers to the activities of banks to buy and sell financial products in the money market. Both bond market and stock market belong to capital market, and the trading of their products does not belong to short-term capital trading business.
Central bank bills belong to money market products, and their liquidity is second only to cash. Common stock, financial bonds and corporate bonds are all capital market instruments, and their liquidity is relatively small compared with money market instruments.