1. On-balance-sheet credit: refers to the asset credit related to the asset account in the balance sheet. Including loans, project financing, trade financing, discount, overdraft, factoring, lending and repurchase;
2. Off-balance-sheet credit: refers to the intermediary business that is not reflected in the balance sheet, but must be specially recorded off the balance sheet. It is a credit for off-balance-sheet surgical purposes that has nothing to do with the subjects in the balance sheet. Including loan commitment, guarantee, letter of credit, bill acceptance, etc.
Second, the relevant supplement:
1. Credit refers to the funds provided by commercial banks to customers of non-financial institutions, or the guarantee of compensation and payment liabilities that may occur to customers in related economic activities.
2. Credit extension includes: on-balance-sheet business such as loans, trade financing, bill financing, financial leasing, overdraft, various advances, and off-balance-sheet business such as bill acceptance, opening letters of credit, letter of guarantee, standby letter of credit, letter of credit confirmation, bond issuance guarantee, loan guarantee, asset sale with recourse, and unused irrevocable loan commitment.
Extended data:
Credit refers to the funds directly provided by commercial banks to customers of non-financial institutions, or the guarantee of compensation and payment liabilities that may occur to customers in related economic activities, including on-balance-sheet businesses such as loans, trade financing, bill financing, financial leasing, overdraft and various advances, as well as bill acceptance, letter of credit opening, letter of guarantee, standby letter of credit, letter of credit confirmation, bond issuance guarantee, loan guarantee, sale of assets with recourse and non-use.
Simply put, credit extension refers to the behavior that banks directly provide financial support to customers or guarantee customers' credit in related economic activities to third parties.
Credit is divided into short-term credit and medium-and long-term credit according to the term. Short-term credit refers to credit within one year (including one year), and medium-and long-term credit refers to credit for more than one year.
Commercial banks shall follow the following principles in granting credit to the service areas under the jurisdiction of their business functional departments and branches and their customers:
(a) should be based on the level of economic development in different regions, economic and financial management capabilities, the occupation and use of credit funds, financial risks and other factors, the implementation of differentiated credit.
(2) Different credit lines should be determined according to the management level of different customers, asset-liability ratio, loan repayment ability and other factors.
(3) Adjust the credit lines of various regions and customers in a timely manner according to the changes of financial risks and customer credit in various regions.
(4) Within the determined credit line, the amount of each loan and the actual total loan amount are specifically determined according to the actual capital demand, repayment ability, credit policy and the ability of banks to provide loans of local and customers. The credit line is not the planned loan line or the allocated loan scale, but the internal control loan line implemented by commercial banks to control regional and customer risks.
References:
Baidu encyclopedia-credit granting