Does fund consignment belong to off-balance-sheet business of commercial banks?

Fund consignment is an intermediate business of commercial banks, which belongs to off-balance-sheet business.

According to Baidu Encyclopedia, fund consignment is an intermediate business of commercial banks and belongs to off-balance-sheet business. Off-balance-sheet business refers to the business that commercial banks engage in, which is not included in the balance sheet according to the current accounting standards and does not form real assets and liabilities, but can cause changes in current profits and losses. Commercial banks can collect sales commissions through consignment funds, broaden their income sources, and at the same time, they will not occupy capital and affect their capital adequacy ratio. However, there are also some risks in the consignment fund, such as the compliance of consignment products, the investor suitability of customers, complaints and emergency handling. Therefore, commercial banks should abide by relevant laws, regulations and regulatory requirements, strengthen risk management and protect the legitimate rights and interests of investors.