Question 1: What do on-balance sheet business and off-balance sheet business mean?
On-balance sheet business refers to the business reflected in the balance sheet, generally including: various deposit businesses (personal/corporate demand time deposits, interbank deposits, etc.), loan business, bill financing, trade financing, and various advances
etc.; off-balance sheet business is business that is not reflected in the balance sheet accounts, generally including: vouchers, valuable documents, financial products, bank acceptance business, letter of guarantee business, letters of credit, as well as fee income and guarantees derived from these businesses
Income, intermediate business income, etc.
Question 2: What does Off-Balance Sheet Activities (OBS) mean? Off-Balance sheet Activities (OBS) refers to the activities of commercial banks. According to common accounting standards, they may not be included in the balance sheet and do not affect their total assets and liabilities.
, but operating activities that can affect the bank’s current profits and losses and change the bank’s return on assets.
Bank's off-balance sheet business can be divided into narrow sense and broad sense.
Off-balance sheet business in a narrow sense refers to those operating activities that are not included in the balance sheet, but are closely related to on-balance sheet asset business and liability business, and will be converted into on-balance sheet asset business and liability business under certain conditions.
These operating activities are usually called contingent assets and contingent liabilities. They are risky operating activities and should be disclosed in the notes to the accounting statements.
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.
Usually what we call off-balance sheet business mainly refers to off-balance sheet business in a narrow sense.
Question 3: What is on-balance sheet business and what is off-balance sheet business?
This table refers to the balance sheet. Off-balance sheet businesses are contingent liability businesses that are not reflected on the balance sheet, but can be converted into content on the balance sheet within a certain period of time. For example, guarantee business and commitment business.
On-balance sheet business refers to the business reflected on the balance sheet.
Such as bank deposits, loans, etc.
Financial liberalization has made commercial banks' deposit-loan interest spreads smaller and smaller, increasing the pressure on banks to survive. Banks can only survive by developing intermediary business and off-balance sheet business.
Question 4: What are the off-balance sheet businesses of banks?
What is off-balance sheet business? 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.
Question 5: What are the off-balance sheet businesses of banks?
What is off-balance sheet business? Low risk, high return.
Off-balance sheet businesses are generally of a contingent asset nature. Although they may also require ratings and credit, they are relatively less risky. Most of them are financial derivatives. However, these products have good returns and will bring a lot of money to banks.
of intermediate business income.
Abroad, these are the main sources of bank income.
Question 6: What are the off-balance sheet businesses of banks?
What is off-balance sheet business?
Why there are off-balance sheet businesses requires a professional answer directly from Baidu Encyclopedia. The popular explanation is as follows: settlement, agency, consulting and other businesses are off-balance sheet businesses. Off-balance sheet businesses are like side businesses. Why do side businesses? To make money?
There are many reasons for broadening business types to attract customers and improve competitiveness. Question 7: What are the off-balance sheet businesses of banks?
What is off-balance sheet business?
Why there is off-balance sheet business 1. Business not included in the bank's balance sheet refers to the business engaged in by commercial banks that is not included in the balance sheet according to common accounting standards. It does not affect its total assets and liabilities, but it can affect the bank's current period.
Profit and loss from operating activities.