Narrow sense of off-balance sheet business includes

The so-called 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 increase the bank's income. Off-balance sheet business is a high-risk business activity, which forms the contingent assets and liabilities of banks, some of which may be converted into the actual assets and liabilities of banks, so it is usually required to be disclosed in the notes to accounting statements.

Usually, what we call off-balance sheet business mainly refers to off-balance sheet business in a narrow sense.

Off-balance-sheet business generally includes the following three types:

1. Guarantee business refers to the business that a commercial bank accepts the entrustment of customers and assumes the responsibility for a third party, including letter of guarantee, standby letter of credit, documentary letter of credit, acceptance, etc.

2. Commitment business refers to the agreed credit business provided by commercial banks to customers on a certain date in the future according to the agreed conditions, including loan commitment.

3. Financial derivative transactions refer to derivative transactions such as forwards, swaps and options of currencies (including foreign exchange) and interest rates conducted by commercial banks to meet the needs of customers' hedging or their own position management.

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Trade financing business

Financial guarantee business includes letter of guarantee, standby letter of credit, loan commitment and loan sale.

The intermediary business and off-balance-sheet business of commercial banks are both related and different, which is easy to be confused.

The relationship between them is: both of them are not reflected in the balance sheet of commercial banks, and some of their businesses do not occupy the bank's funds, and banks play the role of agents and are entrusted by customers; The main sources of income are service fees, handling fees and management fees. The difference is that the intermediary business is more traditional and less risky; Off-balance-sheet business is more innovative and risky, which is generally closely related to on-balance-sheet business and can be transformed into on-balance-sheet business under certain conditions.