The bank guarantees the wealth management business of his agent through invisible guarantee (for example, you think that wealth management will definitely not lose money). Because there is no specific guarantee contract, these wealth management cannot be included in the balance sheet and form an off-balance sheet.
The so-called off-balance sheet or "channel" business refers to the business model in which financial institutions transfer the ownership of non-performing asset packages to off-balance sheet through AMC by initiating the establishment of targeted asset management plans for brokers or exchanging trust products with income rights, but still retain the right to dispose of income. ?
One way for banks to write off non-performing assets is to write off non-performing assets, which means a loss of100%; Another main way is to package bad assets and sell them at a discount.
However, the prices that banks sell to the four major asset management companies are generally low. In addition, the non-performing assets of banks are gradually shifting from the seller's market to the buyer's market, and banks are often reluctant to sell at low prices, which is also the main reason for the large number of bids for the transfer of non-performing assets this year.