Off-balance-sheet business refers to the business activities of a commercial bank that are not included in its balance sheet, but can affect its current profit and loss.
off-balance sheet business can be divided into commitment business, guarantee business, principal-agent business, derivative financial instrument business and consulting service business. Commitment business refers to the agreed credit business provided by commercial banks to customers in a certain period of time in the future, such as commitment loan business. Guarantee business refers to the business that commercial banks accept the entrustment of customers and bear joint and several payment responsibilities to third parties, including guarantee, letter of credit, acceptance and other businesses. Entrusted business refers to the business that commercial banks provide financial services such as agency, distribution and financing on behalf of customers with the purpose of charging a certain fee, including entrusted loans, bonds, fund settlement, receipt and payment, financing on behalf of customers and fund custody. Derivative financial instrument business refers to derivative products based on basic financial instruments or basic financial variables, and its price depends on the price change of the latter. It is a contract in which both parties agree to trade or choose whether to trade at some time in the future by predicting the trend of interest rate, exchange rate, stock price and other factors. Including financial futures, financial options, financial forwards, swap finance, etc. Consulting business refers to the business of providing pure consulting services to customers by using the exclusive license or industry advantage owned by banks. Including financial consulting, entrusted custody and other services. Off-balance-sheet business can be divided into principal-agent business, derivative financial instrument business, contingent liability business and consulting service business according to the nature of business. Among them, contingent liability business includes commitment, guarantee, letter of guarantee, letter of credit, acceptance and other business.
1. Off-balance sheet business in a broad sense includes not only off-balance sheet business in a narrow sense, but also risk-free business activities such as settlement, agency and consultation. Therefore, off-balance-sheet business in a broad sense refers to all businesses that commercial banks engage in that are not reflected in their balance sheets. According to the requirements put forward by the Basel Committee, off-balance-sheet business in a broad sense can be divided into two categories: one is contingent claims (debts), that is, off-balance-sheet business in a narrow sense, including:
(1) loan commitments, which are divided into revocable commitments and irrevocable commitments;
(2) guarantee;
(3) financial derivatives, such as bullish, bearish, forward contracts, upper and lower interest rates, etc.
(4) investment banking, including securities agency, securities underwriting and distribution, gold trading, etc. Second, financial services, including trust and consulting services; Payment and settlement; Agency service; Loan organization, loan approval, syndicated loan agency and other loan-related services. Import and export services, such as agency services, trade declaration, export insurance business, etc.