What does credit business include

I. What credit business includes

Credit business, also known as credit assets or loan business, is the most important asset business of commercial banks, recovering the principal and interest through lending, and obtaining profits after deducting the costs, so credit is the main means of commercial banks' profitability. The term of loans of commercial banks is divided into three kinds: first, short-term loans, with a term of less than one year; second, medium-term loans, with a term of more than one year and less than five years; and third, long-term loans, which refers to loans with a term of more than five years.

Two, credit business includes what

Credit business, also known as credit assets or loan business, is the most important asset business of commercial banks, through the lending of money to recover the principal and interest, after deducting the cost of obtaining profits, so the credit is the main means of profitability of commercial banks. The term of loans of commercial banks is divided into three kinds: first, short-term loans, with a term of less than one year; second, medium-term loans, with a term of more than one year and less than five years; and third, long-term loans, which refers to loans with a term of more than five years.

Third, credit business what is on-balance sheet business, off-balance sheet business?

On-balance-sheet business refers to the business that is to be recorded inside the balance sheet

Off-balance-sheet is the business that is not counted inside the balance sheet

For the bank, it can provide solutions for the customers through some off-balance-sheet business. Off-balance sheet business is not subject to the deposit to loan ratio.

Credit business belongs to the asset class of the bank and is counted as on-balance sheet.