Off-balance-sheet business refers to the business activities of commercial banks that are not included in the balance sheet according to the current accounting standards and do not affect their total assets and liabilities, but can affect the bank's current profits and losses and change the bank's return on assets.
Off-balance sheet business can be divided into narrow sense and broad sense. In a narrow sense, off-balance sheet business refers to those businesses that are not included in the balance sheet, but are closely related to asset business or liability business on the balance sheet. Off-balance-sheet business in a broad sense includes not only off-balance-sheet business in a narrow sense, but also settlement, agency, consulting and other businesses.
Acceptance business () means that a commercial bank receives an application from a customer of a commercial bill debtor and accepts the commercial bill for him. Its essence is the payment commitment made by commercial banks to commercial bills issued by customers.
The so-called acceptance, simply speaking, is a promise to cash, which means that the payer signs the bill and promises to undertake the payment obligation when the bill expires in the future. Acceptance only occurs in the related activities of forward bills. The drawer issues a bill of exchange and delivers it to the payee, and the payee requests payment from the drawee recorded in the bill, and the drawee assumes the payment obligation. This is because before the ticket is issued, there is a capital relationship between the drawee and the drawer, there is a certain capital exchange between the drawer and the drawee, or the drawee has a debt to the drawer. Therefore, the drawer entrusts the payer to pay. In order to make the drawee ready for payment, the holder shall present the acceptance to the drawee before the bill expires, and the drawee shall express his intention.
A commercial acceptance bill is a bill issued by the drawer, which entrusts the drawee to unconditionally pay a certain amount to the payee or holder on a specified date, and is accepted by a drawee other than a bank.