Off-balance sheet credit is the business of making bank acceptance bills, letters of credit and guarantees.

In these businesses, enterprise A first goes to the bank to provide margin and guarantee (mortgage pledge to ensure credit, etc. ) and issue a certain number of bank notes, letters of credit or guarantees. Enterprise A can pay this bill to enterprise B as money, and enterprise B can withdraw money with the bill drawn by the bank, because the money is due. So for banks, it is a long-term fund that must be paid, which is beyond their control.

Off-balance sheet and on-balance sheet refer to the balance sheet, and on-balance sheet refers to the loans existing in the balance sheet; Off-balance sheet is the same. In order to reduce risks and avoid excessive on-balance-sheet assets, banks will transfer off-balance-sheet assets when the loan classification is suspicious or the interest is overdue for 90 days. This is a way of asset management.