1. Different definitions

Off-balance sheet business refers to the business activities of commercial banks that are not included in the balance sheet but can affect the bank's current profits and losses. It has a narrow sense and a broad sense. point. Off-balance sheet business refers to business activities conducted by commercial banks that are not included in the balance sheet according to common accounting standards and do not affect its total assets and liabilities, but can affect the bank's current profits and losses and change the bank's return on assets.

Usually what we call off-balance sheet business generally refers to off-balance sheet business in a narrow 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.

2. Debt disclosure situations are different

On-balance sheet business refers to the business that can be revealed in the asset and liability columns of the balance sheet; such as loans, trade financing, bill financing, and financial leases , overdrafts, various advances, etc.

Off-balance sheet business refers to business that cannot be revealed on the balance sheet, such as guarantees, bank acceptance bills, etc. Off-balance sheet business is mainly composed of various intermediate businesses, which cannot be described as simple asset or liability business, but can be regarded as businesses derived from on-balance sheet business.

1. On-balance sheet assets

On-balance sheet assets refer to the assets reflected on the balance sheet, which is a symmetrical concept with off-balance sheet assets. On-balance sheet assets are mainly used in the balance sheet of an enterprise or company, and on-balance sheet assets are also on-balance sheet funds. When the ownership of assets has not been transferred to the financing enterprise's balance sheet, but its use rights have been transferred, the funds on the balance sheet can enable the enterprise to expand its business scale and alleviate the shortage of funds. On-balance sheet funds = on-balance sheet liabilities + on-balance sheet equity

2. Off-balance sheet assets

Off-balance sheet assets are generally accounting techniques allowed by generally accepted accounting principles (GAAP). Enterprises will Some of its assets, including subsidiaries, loans, derivatives, etc., are placed in this item to reduce the company's debt to capital ratio; off-balance sheet assets do not need to be listed on the balance sheet, but must be listed in the form of notes in the financial report. R&D investment, organizational construction, brand channels, etc. are all off-balance sheet assets.