Credit funds refer to the existence and development in the process of reproduction is to repay the loan conditions for use of monetary funds. It is the main source of: deposits of various types (fiscal deposits,Deposits of enterprisesUrban and rural residentsSavings depositsIts own funds and bank etc.). Mainly used for business and social credit, in order to meet the needs of social production and circulation of commodities.

There are two points: one is where the capital is a certain amount of money, is not refers to the commodity funds, nor the production fund; two is the reason is money is because it is the capital of currency, namely from here on out of capital circulation, and plays a role for money currency, that is to play function the means of circulation and the means of payment in circulation.

The socialist country banks for loans of money. Raise and use of credit funds, to take paid deposits and loans, which is characterized by any further and regular interest payments.

In Chinese and other socialist countries, sources of the credit funds of banks is composed of four parts: its own funds to the bank. The various deposits. The units commissioned by the bank to handle the settlement of funds. The issue of currency. All kinds of deposits are the main sources of credit funds. Funds owned bank is a part of the credit funds, including the country from the budget allocated to the bank's capital (i.e. credit fund) and the bank from the interest on the loan and other business income in accordance with the provisions of the state retained profits. The use of credit funds are mainly used for issuing various loans, less part for gold and silver reserves and foreign exchange reserves. State owned enterprises are the main object of bank loans.

The change of credit funds have certain regularity. Self owned funds or by how much, bank profits to the Treasury to pay taxes and the ratio of finance to the bank increased (or withdrawal) determine the credit fund in the amount of three factors. All deposits and bank settlement funds entrusted by the growth rate, mainly depends on the growth of the scale of production and circulation of commodities. Currency amount, mainly depends on the circulation of commodities and the growth rate of currency circulation speed. Use of credit funds, mainly on the basis of national economic policy and national planning requirements, combined with the specific circumstances of the market supply and demand of funds, to master the use of the possible range of the sources of credit funds.

In China, credit funds is the main source of enterprise owned by the whole people, liquidity, but also an important source of collective ownership enterprise funds. The use of credit funds is appropriate, has the vital significance to the development of the national economy. So, we must strictly control the credit amount and investment. The credit amount control properly, is conducive to the stability of the currency and the market commodity supply and demand in the overall balance. Because the amount of credit funds of the direct impact on the national economy of the money supply, therefore, must ensure that the amount of money in circulation to the production and circulation of commodities if needed, to determine the loan scale. To control credit funds properly, to improve the structure of the national economy and improve macroeconomic efficiency, support and promote the development of various departments, industries, enterprises.

　　The application of the credit fundsSymmetric. By its own funds, bank deposit,Financial bonds, fund in settlement andCurrencyThe distribution of funds, most of which is the deposit, the fund in settlement and other funds.

EffectBank deposits through the main, releaseLoanAnd handle the settlement business activities, toSocioeconomicTo promote the role of life. The sources of credit funds is the foundation of the business activities, is the basic condition for banks to participate in macroeconomic regulation and support the smooth development of the national economy. It reflects the bank credit funds concentrated and accumulated, which reflects the level of development of the national economy and the banking business. National Bank China source of funds, by the end of 1989 to 1356200000000 yuan, equivalent to the total output value of 3460400000000 yuan in 39.2%, the national income of 1317500000000 yuan, fiscal revenue 294800000000 yuan, 1.03 times 4.6 times; 6.23 times more than that of 1978, grow 113.2 than 1952 times.

Funds owned by bankAll his money belonging to the bank, is the basis to carry out business activities of bank funds. Any national banks must keep a certain amount of capital. China bank funds from two aspects: 1BankThe business profit, is the bank loan interest and fee income, retained profits minus interest on deposits and other business expenses. Bank part of the profits to the Treasury, a part of the reserved funds owned by bank. The profits of the formation of the bank's own money banks are the most reliable, stable source of funds, are likely to increase every year, do not need to pay the interest, can use permanent. The finance bank credit funds, before 1979 fiscal budget arrange allocation of bank funds. After the 1979 economic reform, fiscal revenue accounted for the proportion of national income decreased gradually, the bank funds. So just in stock funds in the private bankFundingComponent, has no such factor increment.

DepositThe bank's main source of funding. Although the bank's capital base capital owned bank business, but the amount is limited, any bank can only rely mainly on absorbing deposits and expand the sources of funds, increase the use of funds. ThereforeDepositThe implementation of the work, how much money, is a decisive factor in the banking business to expand the scale of the (seeDeposit).

Financial bondsBanks issuing bonds to raise funds. Western banks have held this business, Chinese began to use this way to raise money from 1985.

The currency fundsThrough the issuance of currency accumulated funds. Unique is the central bank monetary issue right. The currency is a kind of behavior of the central bank on behalf of the state to provide the means of circulation and payment method to the society and to raise funds, whether units or individuals, as long as the money holdings of its currency, the value represented by the central bank on behalf of raising the state, holding people only have the right to obtain the value of rights certificate from the state with time note, that is. While holding hands money represents the value is not equal to realize the value of, or from the country has not actually obtained value, until holding people use money to buy goods and money back to the bank, the country was temporarily occupied by value to be liquidated. Countries continue to issue currency and withdrawal of currency from circulation, often have the money supply a certain market, the bank will often take the corresponding amount of currency funds.

　　Settlement of accountsOccupied inFunds  BankIn the process ofThe clearing businessProcess temporarily use part of the money. For bank transfer settlement service, payment unit to cope with the funds to pay the bank, then the bank only to the payee account, such as the payment unit does not open an account at a bank, they need a period of time allocation of funds. During this time the settlement funds remain in the bank, become the occupation of funds bank settlement. The bank every day for a lot of transfer settlement service, which also frequently occupied funds settlement.

The application of the credit funds

The sources of credit fundsSymmetric. The bank put togetherCredit fundsTo support and promote the development of the national economy, is the concentrated expression of bank assets, as well as the main source of bank profit.

CompositionUse of the funds in banks in western countries, generally includeLoan, buyNegotiable securities,Cash inventory,GoldForeign exchange reserve. Chinese bank funds, including loans and inventory reserves, foreign exchange inventory reserves, as well as in the international financial institution's assets and fiscal borrowing.

Chinese economic reform in 1979, the bank channels for less use of credit funds. Most of the credit funds for payment of bank loans. Loans accounted for the proportion of the total capital, in 1978 for 98.6%. Because since 1979 finance began to borrow money from the bank, and in 1980 Chinese with international financial institutions have the fund relations, in the credit funds in the corresponding to the emergence of "borrowing" and "in the international financial assets" two new projects. The use of credit funds to broaden the way than before, by the end of 1988, the credit funds, loans for 91.9%,Gold and silver reserves0.1%,Foreign exchange1.4%, in the international financial institutions, assets of 1.6%, government debt is 5%.

ProjectThe loan, the bank increased funding is to increase the use of funds; in order to gain from the increase in poorProfitThe main way to increase income, and use of funds is to increase the loan. Banks mainly depend on the deposit money to lend, as the deposit is due or by depositors extraction may at any time, so the loan must also be prescribed time limit expires, recover. The banks to pay interest on savings and other expenses, and obtain the necessary profits, the loan must be the interest received. Interest on the loan is the main source of bank profit. The gold and silver reserves, bank management is gold, silver trading business, the formation of gold, silver inventory reserves. The foreign exchange transactions of foreign exchange, bank the foreign exchange capital tied up in inventory. ④Interbank exchange differenceIs the bank agency or agent, and mutually, mutual fund inter-bank business formation of occupation. Where the bank occupied don't fund called cope with exchange poor, don't do the bank funds occupied called receivables exchange difference. In the international financial institutions, asset, is the formation of China banks with international financial institutions assets. For example, in accordance with the provisions of,The International Monetary FundAndThe World BankMember States, to use foreign capital and a part of their currency to pay the fund share. China pay a share of the fund, is reflected in the project. Chinese pay RMB share by these organizations with the people's Bank of China, reflected in the people's Bank of China sources of funds "liabilities to international financial institutions". The fiscal borrowing, is to support the fiscal deficit, the central bank in the financial sector borrowing andMake an overdraft. Overdraft is to open a current account customers in the bank, with the opening act first agreed, can be in a certain amount exceeds the balance issue cheque payment activities.Treasury overdraftIs the fiscal authorities to make up the deficit, from its overdraft at the central bank deposit account. FinanceThe central bankLoans and overdrafts caused by currency, usually there is no material basis, the amount exceeds a certain limit may lead toInflation.

The bank credit funds based on the same source of credit funds balance, increase the sources of credit funds is to expand the application of the credit funds. Only a reasonable increase in credit funds, bank support to the national economy and promote the role can more fully play out

Due to the credit China and financial capital are national unity arrangements for the use of funds, budget revenue and expenditure balance, has an important influence on the credit funds balance. In the basic fiscal balance and a slight surplus, the sources of credit funds are relatively abundant; and when the fiscal deficit, due to the bank loan and overdraft finance, often to the credit funds balance difficult, resulting in abnormal expansion of credit, the money supply is not normal to increase. Therefore, to maintain overall fiscal balance and credit balance, plays an important role in the national economy.

The movement of credit funds

The inherent law of movement of credit funds balance of performance under the condition of commodity economy.

Double spending, double return CreditAs to pay the value of the conditions for the unilateral transfer payments, although the bank credit funds for specific performance, the deposit, loan, also staggered movement, but whether the deposit orLoanA matter of fact, are lending and recover.MarxIn the analysis of movement in the form of interest bearing capital in the capitalist economy once pointed out: "the money is lent out for a certain period of time, and then put it together with interest (surplus value) together, all forms of interest bearing capital itself has the movement" ("Marx Engels set" volume twenty-fifth, 390th pages). If the smoke to economic relations reflect the movement of capital, also applies to the description under the condition of credit funds.

Movement of the credit funds of the form, can be expressed as G G '(G+ g). Wherein, G represents the lending funds, G 'represents the recovery of funds, Δ g represents the interest. However, it was only after a formula simplified, between lending and recover the actual there is a process of reproduction. Credit funds lent is used as capital, to be used for the purchase of raw materials,EquipmentThe means of production.Credit fundsTo be occupied in the production process, only the new product was manufactured and sold in order to recover, and return the loaner. So, the movement of credit funds balance the whole process can be expressed as:

Among them, G-G said the credit funds lent (the first expenditure), G-W said funds second expenditure, for the purchase of the means of production and labour, W ′ -G ′ said sales of products and recover the funds (the first return), G ′ G ′ (G + G) to recover the principal and some said lending interest (second return). Here, the movement of credit funds balance performance for two times, two times back spending, at the same timeCredit fundsCombined with the production and circulation process and material.

Production capital productionIn a certain period of time, the number of credit demand and supply of funds, fundamentally depend on the status of social reproduction.

Credit funds from the supply side, the sources of credit funds on the social aspects of temporarily idle funds, but to get to the root of the problem is decomposed and the formation of enterprise sales revenue. Therefore, no production growth, not to expand sales of enterprise products, there is no supply of credit funds volume growth. The supply of credit funds scale is restricted by the two factors of the scale of production and reproduction of social capital turnover rate. In terms of the capital turnover rate is fixed, the production scale is large, credit funds supply more. In terms of the scale of production is fixed, the social capital turnover speed, is free from money funds more and more, and the sources of credit funds also expanded, whereas more small. But the social capital turnover rate of speed, but also depends on the reproduction cycle including production time and circulation time, length, this also is influenced by many factors in the reproduction.

Credit funds from the demand side, in the condition of social capital turnover rate is fixed, the expansion of production scale, in the raw material, WIP and finished product reserve fund occupation to a corresponding increase in general, at the same timeThe circulation fieldOccupancy of the product capital and settlement funds will also increase. All these show that, capital scale, the demand for credit growth.

In short, the credit capital supply and demand are subject to the reproduction control, the law is expressed as: production funds - production - funds. The development of production, the demand of credit funds in general will be expanded accordingly, the supply of credit funds is more abundant.

Working conditions of credit fundsThe credit funds can flexible turnover, the key lies in whether the timely recovery of loan funds. However, due to the existence of a lending and reproduction process to recover, so it depends on capital reproduction process smooth turnover.

Social capital reproduction turnover condition is: from the individual enterprises, is for the production and marketing, transformation of the successful completion of the various forms of capital. Capital circulation time, money, will go through three forms of production capital and product capital, including the manufacturing time and current time and. Its turnover depends on the rational organization of production, such as increasing production efficiency, reasonable arrangement and connection process, as well as the balance of production and marketing for, dredge channels of circulation, to ensure that the raw materials are antecedents, marketable products. From the whole society, is the proportion, in two major categories of industrial sectors harmonious proportion. The proportion of coordination, from the physical form, means the production department produced a variety of use value in terms of quality and quantity is needed, each product can be a smooth transformation; from the form of value, means the products can realize its value, be compensated in value; from the physical form and the form of value relations point of view, is the flow of money and material composition can fit. Only under this condition, the enterprise needed for the production of raw materials can be guaranteed, can smoothly into production funds; at the same time, the enterprise product is sold, manufactured goods capital can be successfully recovered to monetary funds. If the enterprise had borrowed money on production organization, can timely return of loans. However, when the ratio of the two major departments and industry departments of proportion, the enterprise itself and marketing lost connection to external conditions, or is itself required raw materials can not be guaranteed, and the finished product is not sold out, capital can't from commodity form into monetary form, is unable to repay loans, and credit funds it is difficult to continue working.