Generally speaking, when an enterprise applies for a loan, the loan interest rate of the lending institution will affect the loan amount of the enterprise, and the loan amount of the enterprise with high interest rate will decrease. Moreover, the bank will require enterprises to earmark the loan funds, which must only be used for the business turnover of enterprises, and shall not be used for risky purposes such as real estate investment, stock trading and smuggling. If the enterprise can't use the funds for the specified purpose, then the lending institution will refuse the loan. The deposit interest rate is also the liquid cash that affects the enterprise's savings in the bank. If the deposit interest rate rises, the debt cost of the enterprise will rise, which will indirectly affect the profit of the enterprise. If it is a listed company, the earnings per share will be relatively reduced, and the valuation of individual stocks will be correspondingly reduced.
First, the enterprise loan conditions
1. An enterprise must be established with the approval of the State Administration for Industry and Commerce, registered and hold a business license.
2, the implementation of independent economic accounting, independent operation of enterprises, self financing. That is, the right of enterprises to engage in production and business activities independently; Having independent commercial funds, independent financial plans and financial statements; Independent accounting of profits and losses, independent signing of purchase and sale contracts.
3. Have a certain amount of self-owned funds If the enterprise does not have a certain amount of self-owned funds, once losses occur, it will inevitably endanger the bank's loans and make the credit of the funds suffer losses.
4. Abide by the policies and regulations and the bank credit settlement management system, and open basic deposit account and general deposit accounts in banks as required.
5. Effective production and operation. The products produced and operated by enterprises must be marketable short-term products, which can bring benefits to society and enterprises and improve the utilization rate of funds and credit.
6. Keep your credit. After the enterprise obtains the loan, it must also strictly fulfill the obligations stipulated in the contract.
Second, the impact of deposit interest on the economy
1. Rising deposit interest rate: it causes the interest rate of loans and refinancing to rise, which leads to the contraction of credit scale, that is, the tightening of monetary policy usually leads to the decline of stock market and the reduction of infrastructure scale, which is usually used to cool the overheated economy;
2. The decrease of deposit interest rate leads to the decrease of loan and refinancing interest rate, which leads to the expansion of credit scale, resulting in the opposite result to the increase of deposit interest rate, which is usually used to promote economic recovery.
What is the impact of interest rate cuts on the lives of banks, enterprises and residents?
As the use price of funds, interest rate plays a very important role in the operation of market economy. The change of interest rate will affect the government's policy decision, the economic benefits of enterprises, and the residents' asset investment choice behavior, which will have a very important impact on economic operation.
1, the impact of interest rate changes on macroeconomics, macroeconomics believes that residents' income can be divided into two parts: savings and consumption;
2. The impact of interest rate changes on capital supply and demand. Interest rate represents the use price of loan funds, determines the interest cost of debtors, and also affects the interest income of creditors.
3. The impact of interest rate changes on investment capital; The change of interest rate will cause the change of investment scale;
4. The influence of interest rate changes on money supply. The change of interest rate will cause the change of the total scale of social credit, and then determine the total money supply;
5. The impact of interest rate changes on the balance of payments When a country has sustained a large number of balance of payments deficits or surpluses, it can be called a serious imbalance in the balance of payments, which will adversely affect a country's economy.
Tips: The above contents are for reference only.
Response time: 2021-12-21. Please refer to the latest business changes announced by Ping An Bank in official website.
2. What impact will low interest rates have on the credit relationship between commercial banks and companies?
Personally, I think the impact should be divided into two aspects:
1, the interest spread decreases. An important source of bank profits is interest margin, that is, interest margin = loan interest rate-deposit interest rate, which is the income of bank operating funds. So in general, it can be seen from the formula that if the deposit interest rate is low, it is obviously beneficial to the bank, while the loan interest rate is low, it is not conducive to the spread income, and if the deposit and loan interest rates drop simultaneously, the spread will not be affected.
2. Changes in business models. As the saying goes, "if you are poor, change it." When the loan interest rate falls sharply, banks will inevitably seek other ways out, such as switching to investment banking or asset management business like other western countries, and the regulatory authorities will also relax the restrictions on mixed operation and help banks achieve transformation. On the other hand, the loan interest rate is the use cost of funds. Generally speaking, the interest rate is positively related to the demand of this enterprise or individual for funds. The decline of loan interest rate is usually accompanied by the decline of GDP, which also means that the funds in the hands of enterprises and individuals are sufficient. At this time, the demand for asset management is more prominent, which will also be the future direction of banks, because banks have a large number of customer resources.
The latest interest rate is released: in July, LPR "stayed put". What impact does this have on the comprehensive financing cost of enterprises?
These measures will have a greater and greater impact on the comprehensive financing cost of enterprises.
Industry experts said that if the interest rate remains unchanged, then the possibility of lpr adjustment in that month is relatively small. If the operating interest rate has not changed, it will not be of substantial help to those lenders, but it will still have a great impact on enterprises. After all, many enterprises have higher loan interest rates. If the interest rate remains unchanged, then in this high-material social condition, after all, the expenses of enterprises are so large, so it will affect the increase of enterprise costs. It will affect the increase of enterprise costs.
From the bank's point of view, commercial banks earn the difference between interest and information, while as loan enterprises, they need to pay a certain amount of interest for their own loans. As long as enterprises and individuals borrow from banks, they need corresponding interest. The latest policy is that the bank interest rate has not changed, which will affect the increase of enterprise costs. If the new corporate loan interest rate and mortgage interest rate drop sharply, then this situation will lead to the reduction of corporate loan interest rate, thus reducing the cost of enterprises. The basis of quotation has not changed.
We should know that the interest rate of loans affects everyone's life, but the basis of bank quotation has not changed, and this interest rate is not very common now. If we discuss from the internal factors, the growth rates of consumers, investment and industrial production have all entered a state of stagnation, and the repair of the economy is relatively slow, which is some economic problems caused by the constant interest rate. Finally, although LPR has not decreased this month, the comprehensive financing cost of enterprises is still decreasing steadily, which is also the result of national micro-regulation. Although the cost of enterprises will increase, the state will allow companies to obtain corresponding benefits from other adjustment policies, so as to maximize the benefits.
What kind of influence will interest rate have on the financial activities of enterprises?
Will lead to changes in interest rates. Enterprises may face risks brought by interest rate changes when raising funds. The interest rate directly determines the capital cost of enterprises. When the country is implementing the "Double Loose" policy, that is, the expansionary fiscal policy and the loose monetary policy, the money supply increases and the loan interest rate decreases, so that enterprises raise funds at this time, the capital cost is lower, and the operating costs borne by enterprises are reduced, thus reducing the financing risks of enterprises; On the contrary, when the "double tight" policy is implemented, that is, when the fiscal policy and monetary policy are tightened, the money supply shrinks and the loan interest rate rises. At this time, enterprises raise funds, the cost of capital increases, and the operating costs borne by enterprises increase, so enterprises will bear greater financing risks.
As the use price of funds, interest rate plays a very important role in the operation of market economy. The change of interest rate affects the economic benefits of enterprises, the investment behavior of residents' assets, and then has a very important impact on economic operation.
Interest rate risk can be defined as the risk that the profitability or value of a company faces due to changes in interest rates. Interest rate fluctuations may have different effects on different companies, but almost every company will be affected by interest rate fluctuations.
Generally speaking, the impact of interest rate on business depends on the choice of financing methods: (1) capital structure; (2) the combination of fixed interest rate and floating interest rate; (3) combination of short-term debt and long-term debt.
1. Evaluate the disadvantages of interest rates.
In order to evaluate the potential impact of interest rate risk on business operations, well-managed enterprises will consider its impact on corporate income (from the perspective of income or accounting) and actual economic value (from the perspective of economy or capital). In order to avoid the impact of interest rate risk on income and economic value, enterprise management must make some trade-offs. If the income is "immune", then the economic value is more easily affected, and vice versa.
2. Matters to be considered when choosing fixed interest rate and floating interest rate.
When choosing between fixed interest rate instruments and floating interest rate instruments (debt or investment), many factors need to be considered, including: (1) the expectation of future interest rate changes. If the expected interest rate is going to fall, then floating interest rate is more attractive for borrowing; (2) the term of the loan or investment. Compared with long-term loans or investments, the interest rate changes of short-term loans or investments are more predictable; (3) the difference between fixed interest rate and floating interest rate; (4) Company policies and risk preference; (5) The current level and combination of interest rate risk exposure. The proper combination of fixed interest rate instruments and floating interest rate instruments can ensure the diversity of interest rate exposure and become a "natural hedging instrument".
3. Management methods of interest rate risk
The concentration of cash balance has many advantages: (1) surplus and deficit balance. After the parent company receives the cash balance, the surplus can offset the deficit, thus reducing the amount of interest payable. (2) Strengthen control. The concentration of the balance means that it is easier for the core financial department to control funds and use its expertise to ensure that risks are managed and opportunities are effectively utilized. (3) Increase investment opportunities. After the funds are concentrated, it is possible to win more favorable interest rates, and the core financial departments holding these funds can enter the offshore market that local business departments cannot enter.