The unbalanced nature of inter-regional economic development is an inevitable and significant problem in the development process of our country. When other financing channels such as capital markets are limited, the rationality and appropriateness of regional allocation of credit funds plays an extremely important role in regional economic development.

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Below I will unpack the content of credit funds for you, hoping to help you.

Contents of credit funds Credit funds (credit funds) have two explanations: first, the funds here refer to a certain amount of monetary funds, neither commodity funds nor production funds; second, the reason why they are monetary funds is that they

It is both a currency that functions as funds, that is, where the circulation of funds begins, and a currency that functions as a currency, that is, it plays the functions of a means of circulation and a means of payment in circulation.

Funds used by banks in socialist countries to issue loans.

Credit funds are raised and used in the form of paid deposits and loans, which are characterized by borrowing and repayment and regular payment of interest.

Composition of credit funds For the analysis of the sources and uses of bank credit funds, we can conduct it from both the macro and micro levels.

From a macro level and within the scope of the entire financial system, the sources of credit funds mainly include the following three parts: 1. Various deposits.

This is the main source of funds, generally accounting for more than 80% of the entire source of credit funds.

2. Financial bonds.

Generally accounting for about 4% of the total credit funds.

3. Liabilities to international financial institutions.

From the micro level, we analyze the source channels and application direction of credit funds from the perspective of a certain commercial bank.

The items of capital sources (liabilities) of commercial banks mainly include 1. Various deposits.

2. Obtain funds from the bond market.

3. Borrow money from the central bank.

4. Interbank deposits and interbank lending.

5. Other sources of funds.

It mainly includes various payables and advances from customers.

6. Bank capital.

Laws of credit funds There are certain regularities in the increase and decrease of credit funds.

The increase or decrease of a bank's own funds is determined by three factors: the bank's profits, the rate of taxes paid by the bank to the finance, and the amount of additional (or withdrawal) credit funds allocated by the finance to the bank.

The growth rate of various deposits and settlement funds entrusted by units to banks is mainly determined by the growth scale of production and commodity circulation.

The size of currency issuance is mainly determined by the growth rate of commodity circulation and the speed of currency circulation.

The use of credit funds is mainly based on the requirements of national economic policies and national plans, combined with the specific conditions of market fund supply and demand, and is controlled and used within the possible scope of credit fund sources.

Sources of Credit Funds In China, credit funds are the main source of working capital for enterprises owned by the whole people, and are also an important source of funds for enterprises under collective ownership.

Whether the use of credit funds is appropriate is of great significance to the development of the national economy.

Therefore, the amount and direction of investment in credit funds must be strictly controlled.

Proper control of the investment amount of credit funds is conducive to the stability of currency value and the overall balance of market supply and demand for commodities.

Because the amount of credit funds invested directly affects the money supply to the national economy, the scale of loans must be determined on the premise of ensuring that the currency circulation meets the needs of production and commodity circulation.

Proper control of the investment direction of credit funds is conducive to improving the national economic structure and increasing macroeconomic benefits, and is conducive to supporting and promoting the development of various departments, industries, and enterprises.