In a narrow sense, off-balance sheet business refers to those business 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 transformed into on-balance sheet asset business and liability business under certain conditions. These business activities are usually called contingent assets and contingent liabilities. They are risky business activities and should be disclosed in the notes to the accounting statements. Narrow off-balance sheet business includes: (1) loan commitment, which can be divided into revocable commitment and irrevocable commitment; (2) guarantee; (3) Financial derivatives, such as futures, swaps, options, forward contracts, upper and lower interest rates, etc. ; (4) Investment banking, including securities agency, securities underwriting and distribution, and gold trading; (5) Intermediary services (including but not limited to agency payment, financial consultancy, asset custody, various custody services, etc.). ); (6) Other businesses.

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. According to the requirements put forward by the Basel Committee, off-balance sheet business in a broad sense can be divided into two categories: one is contingent creditor's rights (debts), that is, off-balance sheet business in a narrow sense. Second, financial services, including: (1) trust and consulting services; (2) Payment and settlement; (3) Agency service; (4) Loan-related services such as loan organization, loan approval and syndicated loan agency. (5) Import and export services, such as agency services, trade declaration, export insurance business, etc.

Compared with international peers, the off-balance-sheet business scope of Chinese commercial banks is relatively narrow and the business volume is relatively small. After China's entry into WTO, they will face the grim situation of competing with many powerful rivals for the domestic off-balance-sheet business market. Domestic commercial banks need to intensify their efforts to rapidly expand off-balance sheet business in a short period of time.

Response time: 2021-12-21. Please refer to the latest business changes announced by Ping An Bank in official website.