What is asset business?

Asset business refers to the use of funds by commercial banks, that is, commercial banks lend or invest the absorbed funds to obtain income. The profitability of commercial banks depends largely on the results of the use of funds. The asset business of commercial banks generally consists of the following parts, of which loans and investments are the most important.

Mainly includes:

1. loan, also known as lending, is a business in which banks lend the absorbed funds to customers at a certain interest rate and return them on schedule.

2. Discounting refers to the business that commercial banks buy bills before the payment date according to customers' requirements.

3. Securities investment refers to the business activities of purchasing securities.

4. Financial leasing.