Off-balance sheet businesses in a narrow sense include:

1. Loan commitments, which can be divided into two types: revocable commitments and irrevocable commitments;

2. Guarantee;

3. Financial derivatives, such as futures, swaps, options, forward contracts, upper and lower interest rate limits, etc.;

4. Investment banking business, including securities agency , securities underwriting and distribution, gold trading, etc.

Off-balance sheet business in a narrow sense refers to businesses that, although not included in the balance sheet, are closely related to the asset business or liability business on the balance sheet. Usually what we call off-balance sheet business generally refers to off-balance sheet business in a narrow sense.

Extended information

Risks:

1. In a guarantee, if the guaranteed party is unable to perform the contract due to bankruptcy, the bank, as the guarantor, will bear the debt.

2. Customer breach of contract.

3. Due to changes in market conditions, the bank's guarantee to customers becomes the allocation of the bank's actual assets.

4. In options, futures and swap transactions, banks' risks are more uncertain.

Baidu Encyclopedia-Off-balance sheet business