Question 2: What do off-balance-sheet liabilities and off-balance-sheet assets mean? On-balance-sheet assets are loans, on-balance-sheet liabilities are deposits, and on-balance-sheet businesses are guarantees and other businesses; The intermediary business of banks, also known as charging business, refers to the business that commercial banks handle payment and other entrusted agency matters for customers and provide various financial services. When handling this kind of business, banks are neither debtors nor creditors, but in the position of entrusted agents, acting as intermediaries to carry out various business activities. Non-interest income business that does not constitute assets and liabilities in the bank's balance sheet.
The so-called off-balance sheet business refers to the business that commercial banks engage in, which is not included in the balance sheet according to the current accounting standards and does not form real assets and liabilities, but can increase the bank's income. 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, so off-balance-sheet business in a broad sense refers to all businesses engaged 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. Off-balance-sheet business in a narrow sense generally includes the following three types: (1) Guarantee business refers to the business that commercial banks accept clients' entrustment and assume responsibilities to third parties, including letter of guarantee (letter of guarantee), standby letter of credit, documentary letter of credit and acceptance. (2) Commitment business refers to the agreed credit business provided by commercial banks to customers on a certain date in the future, including loan commitment. (3) Financial derivative transactions refer to the derivative transactions of forward, swap, option and other currencies (including foreign exchange) and interest rates conducted by commercial banks to meet the needs of customers' hedging or their own position management. Off-balance-sheet business is a high-risk business activity, which forms the contingent assets and liabilities of banks, some of which may be converted into the actual assets and liabilities of banks under certain conditions, that is, off-balance-sheet business may be converted into on-balance-sheet business. Therefore, the financial accounting system requires banks to disclose in the notes to accounting statements.
Question 3: What does off-balance sheet financing mean? That is, funds are not included in the balance sheet and are less monitored by the CBRC. In recent years, due to the sharp increase of deposit penalty reserve ratio and the rapid expansion of off-balance sheet business, the risk has expanded, and the CBRC has now begun to control its development.
Question 4: What do you mean by off-balance sheet liabilities and off-balance sheet assets? Please give me an example, and you will understand:
Loans-assets on the balance sheet
Loan Commitment-Off-balance Sheet Assets
In order to reduce the risk, avoid the high supervision cost caused by excessive on-balance-sheet assets (supervision fees are charged according to the proportion of on-balance-sheet assets) and the factors of capital adequacy ratio, and at the same time, in order to implement active asset-liability management, banks often vigorously develop off-balance-sheet business, that is, intermediary business.
In this case, only considering the on-balance-sheet business often ignores the overall risk of customers, so sometimes it is more appropriate to consider the balance of off-balance-sheet assets.
For banks as a whole, off-balance-sheet asset balance refers to off-balance-sheet risk-weighted asset balance. This is the basis for calculating the capital adequacy ratio.
Question 5: The off-balance-sheet business of off-balance-sheet assets of banks must first understand what this off-balance-sheet business is about. Off-balance-sheet business is a capital flow without capital risk. In addition to the guarantee responsibility, banks only charge fees, do not advance funds, and do not bear risks. Taking entrusted loans as an example, banks are only entrusted to transfer funds for customers, and at the same time register relevant information off the balance sheet. For businesses that banks must bear risks, as well as contingencies, they should be accounted for in the table. For example, banks discount customers and then discount them to the central bank. Off-balance-sheet business refers to the business that is not recorded in the balance sheet and does not form real assets and liabilities, but can change the profit and loss. Classification includes guarantee, commitment and financial derivative transactions. It refers to the derivative transactions of forward, swap, option and other currencies (including foreign exchange) and interest rates conducted by commercial banks to meet the needs of customers' hedging or their own position management. How to distinguish off-balance sheet business from on-balance sheet business? It is necessary to understand the nature of the business first and analyze whether the bank bears risks and whether there are contingencies.
Question 6: How to transfer bank assets from on-balance sheet to off-balance sheet Bank supervision is very strict, especially on-balance sheet assets, and there are countless regulatory indicators staring at it. Moreover, the assets on the balance sheet occupy a lot of funds and credit scope, which affects the bank's credit supply ability and asset return rate. Therefore, in order to free up the scope of credit, reduce capital occupation, increase income, or reduce taxes, banks often move some assets from the balance sheet to the off-balance sheet, or move them out of the balance sheet, or find a new home to take over. Of course, this asset transfer process cannot be regulated by bare tables, but must rely on some tool, that is, channels. Generally speaking, the channel requires the following conditions: First, assets can be released from the balance sheet, which is a prerequisite, needless to say. Second, you can escape supervision, which is a fundamental requirement. It is illegal to make a move in the direct newspaper, and the channel is playing a regulatory edge ball. Banks are also guilty, so channels must be able to evade supervision. Generally speaking, there are three skills: cross-regional, cross-industry and drawer agreement. Cross-regional is to find a job in other provinces, which is not convenient for you to check; Cross-industry means banks (managed by CBRC) looking for trust and asset management. (managed by the CSRC), which makes your information communication poor; Similarly, channel business often has some things that can't be discussed on the table, so there are often drawer agreements. Third, both ends are not in the table and can be completed. Here, two ends are off-balance-sheet, which means that in a channel business, neither the transferor nor the ultimate holder of assets will put assets in the table, and no one likes to buy an asset to crush their own table, so it is not a good channel that two ends are off-balance-sheet.
There are several channels: 1, double buyout, that is, the seller sells assets and signs a drawer agreement with the buyer for forward repurchase. Regarding the seller, the transaction is regarded as two unrelated businesses, and the report is completed in the current period; For the buyer, the business is regarded as a sale and is not included in the table. This is the simplest channel business, and the banking supervisor is angry. In 2009, it was directly prohibited in the Notice on Regulating the Transfer of Credit Assets and Related Matters of Credit Asset Financing Business. 2. Credit to wealth management, that is, banks raise funds by issuing wealth management products, and then the wealth management funds are invested in credit projects that should be issued by credit funds. As a result, the CBRC became angry again, 10. In the Notice on Further Regulating the Transfer of Credit Assets of Banking Financial Institutions, wealth management funds were prohibited from purchasing credit assets. 3. Transfer method of beneficial right, that is, packaging through trust and asset management plan, and transferring beneficial right to complete asset listing. This form is mainly applicable to the upcoming credit projects. First, the asset transferor looks for a cooperative bank, and the cooperative bank as Party A signs an agreement with a trust company or an asset management company to package the credit project into a trust plan or an asset management plan; Secondly, the cooperative bank transfers the beneficial right of trust asset management to the asset transferor. Sometimes, this type will add a long-term beneficial right transfer agreement and an exemption letter as a drawer agreement. In this way, the asset transferor has completed the purpose of lending to credit projects through non-credit funds. 4. Please invest, which is similar to the transfer of beneficial rights, except that there is no packaging of trust and asset management. The transferor of assets deposits a sum of money into the cooperative bank in the name of interbank deposit, and at the same time signs a request agreement with the cooperative bank, agreeing to invest interbank funds in a specific object. Because this request is a drawer's agreement, it will only be represented as a deposit bank in the transferor's table, but as an agency business in the cooperative bank. 5. Asset securitization refers to packaging the assets to be sold into standardized products (usually bonds) through intermediaries and listing them for sale in the market. In order to achieve this goal, the bank needs to find an SPV (or set up its own) and sell its assets to it. Then SPV packages the assets into bonds and can only sell them after being rated by a rating company. This is very laborious and expensive. At present, few banks do this, but this practice is.
Question 7: What do on-balance sheet financing and off-balance sheet financing mean respectively? First, the significance and motivation of enterprise financing:
Enterprise financing refers to the behavior that an enterprise obtains the required funds through certain channels and appropriate ways according to the needs of production and business activities. The motivation of enterprise financing can be divided into four categories: founding financing motivation, expanding financing motivation, compensating financing motivation and mixed financing motivation.
Second, the classification of enterprise financing:
(1) According to different sources of funds, it can be divided into equity financing and debt financing.
(2) According to whether it is through financial institutions, it can be divided into direct financing and indirect financing.
Direct financing does not need to go through financial institutions, and the tools of direct financing mainly include commercial bills, stocks and bonds;
Indirect financing needs to go through financial institutions, and the typical indirect financing is bank borrowing.
(3) According to the different ways of obtaining funds, it can be divided into endogenous financing and exogenous financing.
Endogenous financing: refers to the process that an enterprise converts its savings (depreciation and retained earnings) into investment.
External financing: refers to the process of absorbing idle funds from other economic entities and transforming them into their own investment.
(4) According to whether the financing result is reflected on the balance sheet, it is divided into on-balance sheet financing and off-balance sheet financing.
On-balance-sheet financing refers to financing that may directly cause changes in liabilities and owners' equity in the balance sheet;
Off-balance sheet financing refers to financing that will not cause changes in liabilities and owners' equity in the balance sheet.
(5) According to the use period of raised funds, it can be divided into short-term fund raising and long-term fund raising.
The most basic classification of financing methods: equity financing and debt financing, in which liabilities are divided into long-term liabilities and short-term liabilities, which are called long-term funds, and short-term liabilities are called short-term funds.
Question 8: The difference between on-balance-sheet business and off-balance-sheet business. The risk management of off-balance-sheet business is very different from on-balance-sheet business. In terms of loss embodiment and treatment, the on-balance-sheet business mainly shows the accrual and loss of principal; Off-balance-sheet business needs to reflect risk management through the completeness of the contract. Loss treatment is mainly based on the rights and obligations of the contract, and the agreed content is independent risk pricing ability. Generally speaking, loans and deposits involving bank assets and liabilities belong to on-balance-sheet business, while settlement business not involving assets and liabilities belongs to off-balance-sheet business. Off-balance sheet business is a contingent liability business that is not reflected in the balance sheet, but can be converted into the content on the balance sheet in a certain period of time. For example, guarantee business, commitment business. Off-balance sheet business is also called intermediary business.
Question 9: Which bank wealth management products are on the balance sheet and which are off the balance sheet? The traditional on-balance-sheet business of banks is mainly deposit and loan remittance business, and financial management is strictly off-balance-sheet business.
However, in recent years, with the development of the banking industry and the proliferation of off-balance-sheet business, the money shortage in the banking industry has become more and more serious. China Banking Regulatory Commission (CBRC) has begun to strengthen the supervision of off-balance-sheet business. Basically, banks design their own external sales and classify them as on-balance-sheet business, because this part of business can be supervised by CBRC. Other channels represented by banks or products of companies that are difficult for CBRC to supervise are all off-balance-sheet businesses.
Asset pool wealth management products refer to hybrid wealth management products that continuously raise funds and dynamically manage * * * asset packages composed of various assets (bonds, bills, deposits, market currency instruments, etc.). ). It's a bit like a hybrid fund, except that the assets contained in this product are limited to the assets in the banking business.
Question 10: Why do banks transfer off-balance sheet assets to off-balance sheet banking supervision? The supervision of banks is very strict, especially the assets on the balance sheet, and there are countless supervision indicators. Moreover, the assets on the balance sheet occupy a lot of funds and credit scope, which affects the bank's credit supply ability and asset return rate. Therefore, in order to free up the scope of credit, reduce capital occupation, increase income, or reduce taxes, banks often move some assets from the balance sheet to the off-balance sheet, or move them out of the balance sheet, or find a new home to take over. Of course, this asset transfer process cannot be regulated by bare tables, but must rely on some tool, that is, channels. Generally speaking, the channel requires the following conditions: First, assets can be released from the balance sheet, which is a prerequisite, needless to say. Second, you can escape supervision, which is a fundamental requirement. It is illegal to make a move in the direct newspaper, and the channel is playing a regulatory edge ball. Banks are also guilty, so channels must be able to evade supervision. Generally speaking, there are three skills: cross-regional, cross-industry and drawer agreement. Cross-regional is to find a job in other provinces, which is not convenient for you to check; Cross-industry means banks (managed by CBRC) looking for trust and asset management. (managed by the CSRC), which makes your information communication poor; Similarly, channel business often has some things that can't be discussed on the table, so there are often drawer agreements. Third, both ends are not in the table and can be completed. Here, two ends are off-balance-sheet, which means that in a channel business, neither the transferor nor the ultimate holder of assets will put assets in the table, and no one likes to buy an asset to crush their own table, so it is not a good channel that two ends are off-balance-sheet. There are several channels: 1, double buyout, that is, the seller sells assets and signs a drawer agreement with the buyer for forward repurchase. Regarding the seller, the transaction is regarded as two unrelated businesses, and the report is completed in the current period; For the buyer, the business is regarded as a sale and is not included in the table. This is the simplest channel business, and the banking supervisor is angry. In 2009, it was directly prohibited in the Notice on Regulating the Transfer of Credit Assets and Related Matters of Credit Asset Financing Business. 2. Credit to wealth management, that is, banks raise funds by issuing wealth management products, and then the wealth management funds are invested in credit projects that should be issued by credit funds. As a result, the CBRC became angry again, 10. In the Notice on Further Regulating the Transfer of Credit Assets of Banking Financial Institutions, wealth management funds were prohibited from purchasing credit assets. 3. Transfer method of beneficial right, that is, packaging through trust and asset management plan, and transferring beneficial right to complete asset listing. This form is mainly applicable to the upcoming credit projects. First, the asset transferor looks for a cooperative bank, and the cooperative bank as Party A signs an agreement with a trust company or an asset management company to package the credit project into a trust plan or an asset management plan; Secondly, the cooperative bank transfers the beneficial right of trust asset management to the asset transferor. Sometimes, this type will add a long-term beneficial right transfer agreement and an exemption letter as a drawer agreement. In this way, the asset transferor has completed the purpose of lending to credit projects through non-credit funds. 4. Please invest, which is similar to the transfer of beneficial rights, except that there is no packaging of trust and asset management. The transferor of assets deposits a sum of money into the cooperative bank in the name of interbank deposit, and at the same time signs a request agreement with the cooperative bank, agreeing to invest interbank funds in a specific object. Because this request is a drawer's agreement, it will only be represented as a deposit bank in the transferor's table, but as an agency business in the cooperative bank. 5. Asset securitization refers to packaging the assets to be sold into standardized products (usually bonds) through intermediaries and listing them for sale in the market. In order to achieve this goal, the bank needs to find an SPV (or set up its own) and sell its assets to it. Then SPV packages the assets into bonds and can only sell them after being rated by a rating company. This is very laborious and expensive. At present, few banks do this, but this practice is.