in the case that the income of securities investment is lower than that of loans, the reason why banks choose securities investment is that the future income of securities investment will be higher than that of loans.

The return on investment is phased. If the current return on securities investment is low, it does not mean that it will be low in the future. On the contrary, banks will choose securities investment if they value the future return.

the investment business of commercial banks refers to the activities of banks to buy securities. Investment is an important asset business of commercial banks and one of the main sources of bank income.

the investment business of commercial banks can be divided into domestic securities investment and international securities investment according to different objects. Domestic securities investment can be roughly divided into three types, namely, government securities investment, local government securities investment and corporate securities investment.

securities issued by the national government can be divided into two types according to different sales methods, one is called publicly sold securities, and the other is called privately sold securities.

government securities purchased by commercial banks include treasury bonds, medium-term bonds and long-term bonds.

1) treasury bills. Treasury bonds are short-term government bonds with a maturity of less than one year.

2) medium and long-term bonds. Medium-and long-term bonds are a kind of bonds issued by the state to meet the capital needs of infrastructure investment. Generally, their interest rates are higher and their maturities are longer, so they are better investment targets for commercial banks.

Differences between lending institutions and banks

1. Quota: In terms of credit loans, the bank's quota is generally higher than that of private microfinance institutions. But this is not absolute, mainly based on the applicant's comprehensive qualifications.

2。 Interest: The bank's interest rate is low, and the average monthly interest rate is about 4% -1 minute. For a loan of 1, and a monthly interest rate of 4%, the monthly interest rate is 1, * . 4=4 yuan; Lending institutions generally have a monthly interest rate of 1 -2 points. Take a loan of 1, yuan and a monthly interest rate of 1 as an example, then the monthly interest is 1, * . 1=1 yuan.

3。 Fees: There are no other fees for bank loans except interest; However, some lending institutions are not very compliant. Apart from interest, there are also some production costs, such as guarantee fees, accommodation fees, information management fees, etc. Everyone should pay attention to accounting clearly when applying.

4。 Repayment: Both bank loans and institutional loans need to be repaid on time. If it is overdue, the bank will notify me and my contacts by SMS, and those who are overdue may be prosecuted; However, lending institutions will make greater efforts to collect repayment and the means are not legal enough.