The concept of interbank financial business of commercial banks

Interbank business refers to financial interbank customers (including banks, securities, insurance, trusts and financial leasing, asset management companies, financial leasing, funds) services and cooperation, and various deposit businesses with inter-bank financing as the core. It is a new business that has suddenly emerged and developed vigorously in commercial banks in recent years.

What are the interbank businesses of commercial banks?

1 Bank-securities cooperation

Businesses with banks and securities financial institutions include settlement and cash management, credit business, asset securitization business, securities investment business and equity business.

2 Silver cooperation

It has settlement, custody, cash and transfer business and asset management business with banks and futures financial institutions.

3 Silver Fund Cooperation

Provides agency underwriting services, fund product investment, settlement services, custody services, debt business for absorbing funds from fund institutions, customized investments, capital operations, and investment consulting services , risk management, asset replacement, avoiding policy restrictions, etc.

4 Bank-to-Bank Cooperation

Cooperation with banks includes asset business, liability business, off-balance sheet business and capital business.

5 Bank and Trust Business

Including investment business, channel business, fund custody and settlement business, asset transfer business, trust product sales agency, and fund management with banks and trust financial institutions.

6 Banking and financial cooperation

There are liability business, asset business, off-balance sheet business, etc. Banking financial institutions.

7 Bank leasing cooperation

It has financing business, intermediary business, and equity cooperation with banking leasing financial institutions.

8 Bancassurance cooperation

Business settlement business, agency business, strategic cooperation and equity cooperation between banks and insurance companies.

On-balance sheet business and off-balance sheet business

On-balance sheet credit includes inter-bank deposits, inter-bank loans, inter-bank lending, inter-bank payments, repurchases and resales, sell-backs and inter-bank investments.

Off-balance sheet letters of credit include commitments, guarantees, letters of credit and standby letters of credit. Related questions and answers: What is the interbank business of banks?

The interbank financial business of commercial banks refers to various businesses that serve and cooperate with financial interbank customers and have interbank financing as the core. It is a new business that has emerged and flourished in commercial banks in recent years. Specifically, it includes: agency interbank fund clearing, interbank deposits, bond investment, interbank lending, foreign exchange trading, derivatives transactions, client fund transactions and bond investment, interbank asset sales and repurchases, bill rediscounting and rediscounting, etc. In recent years, the interbank business of some joint-stock commercial banks has developed rapidly, and the proportion and contribution of interbank business volume, income, profits, etc. in various businesses of commercial banks have increased significantly. Related Q&A: In the context of the central bank’s interest rate cuts, is there any possibility of a turnaround in Industrial Bank’s interbank business?

I think it is impossible. Interbank business is the largest business for idle funds. In the environment where the state requires funds to support real enterprises, Industrial Bank has been unable to recover.

In the actual operation of banking business, interbank business does have a lot of market space. Even if the country now restricts interbank business, it is still impossible to eliminate interbank business. The bank's use of funds and the balance of positions all require the use of interbank business.

The correlation between interbank business and market interest rates is very large. Regardless of whether the central bank raises or lowers interest rates, there is huge market space. But the problem is that once they can obtain huge profits from interbank business, banks will no longer have the incentive to invest loan funds in real enterprises. So this is a contradiction.

Industrial Bank has always focused on developing interbank business. Unfortunately, this goal was chosen at an inappropriate time. In China, only the central bank has always been the "bank of banks." Industrial Bank's dream of being the king of the industry may be shattered.

I am Konggu Hantan, sharing my views with you.