Preliminary Study On Commercial Banks' Off-balance - Sheet Business

China succeeded in entering WTO in 2001. According to the negotiation of WTO, Chinese banking will be fully open to foreign finance organizations by 2006. By then Chinese banking enterprises will face the great challenge of foreign finance organizations. To reply to such conditions, Chinese commercial banks begin to speed up the reform and innovation. Surveying international banking, Off-Balance-sheet-Activities appearing after World War II have become the main fields of large international banks in making profit. By the force of saturation of traditional assets-liabilities activities and of shortening the gap between Chinese banking with international banking at the same time, Chinese commercial banks begin to attach importance to Off-Balance-sheet-Activities and devote much manpower and fund. We can forecast that Off-Balance-sheet-Activities of Chinese commercial banks will have great development in not far future. This paper focuses on the issue of accounting and disclosure through introducing some basic information of Off-Balance-sheet-Activities, further more, proposes some mending assumption to the work of commercial banks in Off-Balance-sheet-Activities.This paper includes four parts. Begin with prologue, expressing the motivation of this paper and literature retrospect. The first part defines Off-Balance-sheet-Activities and its scope by comparing Off-Balance-sheet-Activities and intermediary-Business. The second part analyses the background and risk-supervision between developed countries and China. The last part analyses thoroughly the relevant accounting theory, further more, referring to practical inquiry, propose some mending assumptions to the work of commercial banks in Off-Balance-sheet-Activities.