Off-balance sheet business is the business activities of commercial banks that are not included in the balance sheet but can affect the bank's current profits and losses.

Off-balance sheet business can be divided into commitment business, guarantee business, agency business, derivative financial instrument business and consulting service business according to its business content. Commitment business refers to a commercial bank providing agreed credit business to customers in a certain period in the future according to pre-agreed conditions, such as committed loan business. Guarantee business refers to the business in which commercial banks accept the entrustment of customers and bear joint payment responsibilities to third parties, including guarantees, letters of credit, acceptance and other businesses. Entrusted agency business refers to the business in which commercial banks accept entrustment from customers for the purpose of collecting certain handling fees, and use their own resource advantages to provide customers with financial services such as agency, distribution, and financial management on behalf of clients, including entrusted loans, agency bonds, and agency funds. Liquidation, collection and payment, financial management on behalf of clients, fund custody and other services. Derivative financial instrument business refers to derivative products based on basic financial instruments or basic financial variables, the price of which depends on the price changes of the latter. It is an agreement between the parties to the transaction in the future by predicting the trend of changes in interest rates, exchange rates, stock prices and other factors. A contract for trading or choosing whether to trade according to certain conditions at a certain time. Including financial futures, financial options, financial forwards, swap finance, etc. Consulting service business refers to the pure consulting service business provided to customers based on the bank's exclusive license or industry advantages. Including financial consulting, entrusted custody and other services. Off-balance sheet business can be divided into agency business, derivative financial instrument business, contingent liability business and consulting service business according to the nature of the business. Among them, contingent liability businesses include commitments, guarantees, letters of guarantee, letters of credit, acceptances and other businesses

1. In addition to the narrow off-balance sheet business, the broad off-balance sheet business also includes risk-free business activities such as settlement, agency, and consulting. Therefore, the broad off-balance sheet business refers to all businesses engaged in by commercial banks that are not reflected in the balance sheet. According to the requirements put forward by the Basel Committee, off-balance sheet business in a broad sense can be divided into two major categories: First, contingent claims (debt), that is, off-balance sheet business in a narrow sense, including:

(1) Loan commitments , this kind of commitment can be divided into two types: revocable commitment and irrevocable commitment;

(2) Guarantee;

(3) Financial derivatives, such as calls, options, long-term commitments futures contracts, upper and lower limits on interest rates, etc.;

(4) Investment banking business, including securities agency, securities underwriting and distribution, gold trading, etc. The second is financial services, including: trust and consulting services; payment and settlement; agent services; loan-related services, such as loan organization, loan approval, syndicate loan agency, etc. Import and export services, such as agency banking services, trade declarations, export insurance services, etc.