Credit makes finance

Credit is the source of economic operation of the system’s core, wealth. Only comprehend credit itself, through to complex economic phenomena confused, insight into the nature of the economy. Conversely, loss of trust, lack of credit, a contract is a piece of paper, a piece of paper currency, the paper stock may even not as good, no amount of resources is not wealth.

With the advent of mass entrepreneurship and innovation, the times, the integrity of financial services has become an important factor in the development of financial services, an important part of competition in the industry, as well as the focus of market competition lies. Star of Wealth Shanghai Investment Management Consulting company has always been the lifeblood of credit for businesses and gold assets in all corners of the financial markets, credit relations of each participant as an interlocking and mutually premise organic network, or will pass, good corporate credit market opportunity is much stronger competitive advantage to gain market recognition and reputation on high, on the contrary, it will fall into a vicious cycle of poor credit, and even expelled out of the market.

Financial integrity is adequate allocation of social resources and the means to achieve free movement of capital, reducing market transaction costs, savings and capital flows necessary prerequisite to accelerate capital turnover. Lack of funds flowing from one party to the surplus, ownership and use of funds meant the separation of ownership also means funds bear a certain degree of risk. If the borrower party does not keep its promise, failed to fulfill timely debt service obligations, will result in financial losses lenders. Over time, it will generate too much credit crunch phenomenon even refused loans, with the result that the financial market is gradually shrinking. Only to further enrich financial services, further enhance the financial integrity of financial markets in order to further open up creativity.

Leave a Reply

Your email address will not be published. Required fields are marked *