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    Chapter 2 - Credit

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    Đỉnh Kout Nam
    This document discusses credit and is divided into 4 sections: 1) Foundation and development of credit, 2) Essence of credit, 3) Classification of credit, and 4) Roles of credit. It defines credit and explores its origins in economic activity and capital flows. Credit is classified into types including trade credit, bank credit, government credit, and others. The roles of credit are also summarized as promoting re-production, transmitting government regulation, implementing social policies, and extending international relationships.

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    Chapter 2 - Credit

    Uploaded by

    Đỉnh Kout Nam
    25 views18 pages
    This document discusses credit and is divided into 4 sections: 1) Foundation and development of credit, 2) Essence of credit, 3) Classification of credit, and 4) Roles of credit. It defines credit and explores its origins in economic activity and capital flows. Credit is classified into types including trade credit, bank credit, government credit, and others. The roles of credit are also summarized as promoting re-production, transmitting government regulation, implementing social policies, and extending international relationships.

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    This document discusses credit and is divided into 4 sections: 1) Foundation and development of credit, 2) Essence of credit, 3) Classification of credit, and 4) Roles of credit. It defines credit and explores its origins in economic activity and capital flows. Credit is classified into types including trade credit, bank credit, government credit, and others. The roles of credit are also summarized as promoting re-production, transmitting government regulation, implementing social policies, and extending international relationships.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views18 pages

    Chapter 2 - Credit

    Uploaded by

    Đỉnh Kout Nam
    This document discusses credit and is divided into 4 sections: 1) Foundation and development of credit, 2) Essence of credit, 3) Classification of credit, and 4) Roles of credit. It defines credit and explores its origins in economic activity and capital flows. Credit is classified into types including trade credit, bank credit, government credit, and others. The roles of credit are also summarized as promoting re-production, transmitting government regulation, implementing social policies, and extending international relationships.

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    © All Rights Reserved
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    of 18

    CHAPTER

    CREDIT

    Lecturer: Assoc. Prof., Ph.D. DANG VAN DAN


    1
    CONTENT

    1. FOUNDATION & DEVELOPMENT OF CREDIT

    2. ESSENCE OF CREDIT

    3. CLASSIFICATION OF CREDIT

    4. ROLES OF CREDIT

    2
    1. FOUNDATION & DEVELOPMENT OF CREDIT

    1.1. DEFINITION

    Credit is the temporary transfer of a quantity of value (in the

    form of currency or asset) from the owner to the user on the

    basis of a return of a larger amount of value than the original

    3
    I. FOUNDATION & DEVELOPMENT OF CREDIT

    2. FOUNDATION OF CREDIT

    Derived from the nature of the capital

    cycle in the economy

    Derived from the demands for investments

    and spending in the economy

    4
    2. ESSENCE OF CREDIT

    A temporary capital transfer on the basis of trust

    A temporary capital transfer on the basis of


    repayment

    A movement of loan capital

    5
    3. CLASSIFICATION OF CREDIT

    3.1. TRADE CREDIT


    Trade credit is a credit relationship between businesses
    (business-to-business) in the form of goods purchases and sales,

    usually in the short term.

    6
    3. CLASSIFICATION OF CREDIT

    3.1. TRADE CREDIT

    Classification of commercial papers

    Based on drawing Based on transfering

    Commercial paper non-


    Bill of nominal bill
    exchange
    Commercial paper
    Promissory nominal bill
    note
    Commercial paper sight
    bill
    7
    3. CLASSIFICATION OF CREDIT

    3.2. BANK CREDIT

    Bank credit is a credit relationship between banking

    institutions and other entities in the economy.

    8
    3. CLASSIFICATION OF CREDIT
    3.2. BANK CREDIT

    Credit Credit Form of Method of Characteristics


    Credit term
    purpose guarantee credit repayment of repayment

    capital

    9
    3. CLASSIFICATION OF CREDIT

    3.3. GOVERNMENT CREDIT

    Government credit is a credit relationship between the

    government and other entities in the economy. The

    government raises funds to meet the demands of the budget.

    10
    3. CLASSIFICATION OF CREDIT

    3.3. GOVERNMENT CREDIT

    Classification of government bonds:

    ▪ Based on the scope of issuance

    ▪ Based on the term

    ▪ Based on the purpose of issuance

    ▪ Based on the methods of repayment

    ▪ Based on the characteristics of repayment

    11
    3. CLASSIFICATION OF CREDIT

    3.4. OTHER TYPES OF CREDIT


    ✓ Business credit
    ✓ Private credit

    12
    4. ROLES OF CREDIT

    4.1. PROMOTING THE RE-PRODUCTION PROCESS

    Credit activities promote the mobilization of capital sources,

    meet the demands of the capital, and force borrowers to pay

    attention to the efficiency of capital usage.

    13
    4. ROLES OF CREDIT

    4.2. TRANSMISSION OF THE GOVERNMENT REGULATION

    The government manages credit activities through interest

    rates adjustments, lending processes, credit supply control of

    the commercial banking system.

    14
    4. ROLES OF CREDIT

    4.3. IMPLEMENTING SOCIAL POLICIES OF THE

    GOVERNMENT

    Social supports by preferential credit policies for

    disadvantaged economic areas, remote areas, policy

    beneficiaries, and loans to students.

    15
    4. ROLES OF CREDIT

    4.4. EXTENDING THE RELATIONSHIP WITH OTHER

    COUNTRIES

    Providing credit to finance import and export activities,

    receiving foreign credit capital → Promoting foreign

    trade activities and other international economic

    relationships.

    16
    Distinctions among treasury bills, treasury bonds and
    investment bonds

    Aspect Treasury bills Treasury bonds Investment bonds

    Issuer

    Duration

    Issuance
    purpose

    17
    Distinctions: Trade credit, Bank credit, State credit

    Aspects Trade credit Bank credit State credit


    Involving parties

    Subjects

    Duration

    Instrument

    Feature

    Purpose
    18

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