Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development.
Safety, liquidity and efficiency are the basic principles of commercial banks' loan operation. 1, loan security is the primary problem faced by commercial banks; 2. Liquidity refers to the ability to recover the loan within a predetermined period or realize it quickly without loss of land, so as to meet the needs of customers to withdraw deposits at any time; 3. Efficiency is the basis of sustainable operation of banks.