Financial Intermediation

Credit Funds refer to the funds issued as loans by banking institutions. The sources of credit funds of the banking institutions included deposits, issue of financial bonds, account-payable and temporary gathering, liabilities to international financial institutions, currency in circulation, various reserves, owners’ rights and interests and other items. The credit funds can be used in forms of loans, securities and investment, account receivable and advance payment, entrusted investment, gold, foreign exchange, cash on hand, government debt and assets in the international financial institutions.

Deposit is a form of credit by which enterprises, institutions, organizations or households can put money into banks and other credit institutions for safekeeping and interest earning under the principle of free withdrawal. According to different depositors, deposits are divided into enterprise deposits, treasury deposits, deposits of government agencies and organizations, capital construction deposits, savings deposits, rural saving deposits, entrusted deposits and other deposits. Deposits are major sources of the credit funds of banks.

Loan is a form of credit by which banks and other credit institutions provide funds at certain interest rate to enterprises and individuals in the light of the principle of unconditional repayment. Loans from Chinese banks include circulating capital loans, fixed assets loans, loans to urban and rural individuals engaged in industrial and commercial business and agricultural loans.

Insurance Companies refer to commercial insurance companies of various forms registered by law and established in China with the approval of insurance regulatory agencies.

Amount Insured refers to the maximum that the insurant will get for the claim of the case insured.

Premium is the fee paid by the insurant to the insurer to obtain the obligation of compensation from the insurance within the agreed terms.

Settled Claim is the compensation paid by the insurer to the insurant in accordance with the insurance contract.

Payment includes payment for death, injury or medical treatment and mature payment. Payment for death, injury or medical treatment refers to the money paid to the insurant (or the beneficiary) in accordance with the life or health insurance contract when the insurant encounters accidents within the insured period covered in the contract. Mature payment refers to the mature payment to the insurant in accordance with the life insurance contract at the end of the insured period.