Off-balance sheet business refers to non-traditional business between banks and customers, mainly including guarantee business, trust business and insurance business. These businesses are usually not reflected in the bank's balance sheet, so they are called off-balance sheet businesses. Off-balance-sheet business is characterized by high risks and relatively high returns.
On-balance-sheet business refers to the traditional business between banks and customers, mainly including deposits, loans, bill acceptance, credit cards and so on. These businesses are usually reflected in the bank's balance sheet, so they are called on-balance-sheet businesses. On-balance-sheet business is characterized by low risk and relatively stable income.