Analysis On Development Of OBS Of China Commercial Banks

Since 1980s the management environment of commercial banks has changed suddenly. Justthese elements which include the frequent wave of interest rate and exchange rate, the fiercer andfiercer competition in the field of finance and the rapid development of technical revolution pushthe management of commercial banks to the way of synthesis, electron and securitization.Meanwhile the pattern of managing has changed a lot, and the more noticeable of them is therapid development of off-balance –sheet activities. According to our nation's relevant promises when we entered WTO, the financial institutionsof China should be opened completely in 2006. The thorough entering of foreign banks willcome true under this background. After foreign banks coming to China , they will competeintensively with China's banks depending on their favorable conditions in capital, technologyand experience because most of them can operate almost all kinds of business. Theoff-balance-sheet activities are the first focus in this competition. It's the key for foreign banks toexpanding their business scope, strengthening their capacity in competition and increasing theirprofits. Consequently it is urgent for China's commercial banks to develop the off-balance-sheetactivities. This paper takes advantage of financial intermediary theory and financial innovation theory,combining the analysis on the western development experience of off-balance-sheet activities ,and analyze and probes into the problems, present condition, influences and causes from theangle of theories and practices. Then some development strategies are put forward to make anormative development of off-balance-sheet activities for our commercial banks. Finally thepaper analyzes the management against the risk of these activities and offers some practicalsuggestions. This paper is divided into four chapters,simply describes as follows: Chapter one isthe theoretical foundation of off-balance-sheet activities. Chapter two is the development andrevelation of off-balance-sheet activities in western countries.Chapter three is current condition of off-balance-sheet activities of our country. Chapter four issome strategies and suggestions about the development and risk management ofoff-balance-sheet activities of our commercial banks in future.