What Does a Business Agent Do?

Agency business is the business where the agent accepts the client's entrustment and handles its designated economic affairs on behalf of the agent. One of the main traditional businesses of trust institutions. Both the agency business and the trust business are based on trust. The status of the agent and the trustee in the trust are similar, but there are obvious differences: In the trust business, the client must transfer the property rights of the trust property to the trustee. Property rights are not transferred in agency business. In trust business, the trustee handles trust affairs in its own name, while in the agency business, the agent handles trust affairs in the name of the agent. The trustee's authority in the trust business is relatively large. Under the premise of observing the trust purpose, the trustee can handle trust affairs independently, while the agent's authority is small. Generally, the agent needs specific authorization in handling the agency affairs. The responsibility of the trustee is greater than that of the agent. The scope of agency business is greater than trust business, mainly because agency business is not subject to property restrictions, and some economic affairs that do not involve property can also be agency, such as consulting and investigation, agency accounting affairs, etc., and trust business must focus on trust property. The types of agency business are very wide, such as agency collection and payment, debt and debt clearing, agency asset custody, agency securities issuance, agency establishment, agency accounting affairs, agency insurance, etc. The agency business is carried out according to the agency contract signed between the agent and the agent. The agent shall bear responsibility for the legal consequences of the intention expressed and formed by the agent within the scope of authorization, but the agent shall bear the responsibility for acts beyond the authorization. This is liable for the losses caused to the agent. ^[1]

Agency business

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Agency business is the business where the agent accepts the client's entrustment and handles its designated economic affairs on behalf of the agent. One of the main traditional businesses of trust institutions. Both the agency business and the trust business are based on trust. The status of the agent and the trustee in the trust are similar, but there are obvious differences: In the trust business, the client must transfer the property rights of the trust property to the trustee. Property rights are not transferred in agency business. In trust business, the trustee handles trust affairs in its own name, while in the agency business, the agent handles trust affairs in the name of the agent. The trustee's authority in the trust business is relatively large. Under the premise of observing the trust purpose, the trustee can handle trust affairs independently, while the agent's authority is small. Generally, the agent needs specific authorization in handling the agency affairs. The responsibility of the trustee is greater than that of the agent. The scope of agency business is greater than trust business, mainly because agency business is not subject to property restrictions, and some economic affairs that do not involve property can also be agency, such as consulting and investigation, agency accounting affairs, etc., and trust business must focus on trust property. The types of agency business are very wide, such as agency collection and payment, debt and debt clearing, agency asset custody, agency securities issuance, agency establishment, agency accounting affairs, agency insurance, etc. The agency business is carried out according to the agency contract signed between the agent and the agent. The agent shall bear responsibility for the legal consequences of the intention expressed and formed by the agent within the scope of authorization, but the agent shall bear the responsibility for acts beyond the authorization. This is liable for the losses caused to the agent. ^[1]

The agency business has the nature of serving customers. It is a contractual relationship and legal behavior between the agent and the principal. Commercial banks do not use their own assets in the process of agency business.

The role of agency business is mainly reflected in the following aspects:

1. Increase bank profits.

2. Promote competition among banks.

3. Promote the development of bank assets and liabilities business.

Collection and payment services.

The most widely used in agency business is

First, the development of agency business is an inevitable trend of deepening social division of labor. If all enterprises follow the principle of social division of labor, all of Barker's commissioned businesses are entrusted to bank agents. The effect of economies of scale will not only reduce their average operating costs, but also avoid a lot of duplication and consumption of social labor. Obviously, the benefits and the economic benefits of the whole society have a huge driving role.

Secondly, agency business also plays a positive role in stabilizing the economic order and promoting the standardization of unit and individual behavior.

Finally, starting an agency business can give full play to the high degree of electronicity of commercial banks, strong capital strength, good staffing quality, and many business outlets to the resources, so that they can obtain more profits without changing the size of the bank's assets and liabilities and become a bank New benefit growth points.