What is a debt bank?

Debt bank is a comprehensive service organization to solve various debt problems. It is the product of the development of commodity currency economy to a certain stage. Debt bank theory was first put forward by American economist Kenneth Joseph Arrow in 1968. He believes that it is an indispensable behavior in economic activities to simplify the debt chain or debt network by logic, so as to reduce or eliminate debts for a link or a debtor.

The emergence and development of debt banks are related to the development of monetary commodity economy, and bond swap in capitalist society is the basis for the formation of debt industry. From market economy to space economy era, economic flow will accelerate, and the fastest way of economic growth is the presentation and growth of creditor's rights and debts system.

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Because the customers contacted by the debt banking industry are basically entrepreneurs and individual industrial and commercial households of small and medium-sized enterprises everywhere. The professionalism and standardization of debt banks directly affect the social stability of the whole country.

Due to various reasons of the government in the economic field, the business development of debt banking system in developing countries is very slow. On the one hand, the financial systems and institutions in developing countries are not very sound, and the national credit awareness in the hearts of the people is very weak. On the other hand, the economy of developing countries is still in a low-level monetary-based economic model.

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