Study On Strategy Of Off-balance Sheet Activities On Harbin Bank

In recent years, the commercial banks in china have experienced an income decline due to the rising non-performing loan ratio; on the other hand, foreign-funded banks have gained increasing domestic market share in the fierce competition. Under the above-mentioned internal and external conditions, China’s commercial banks are facing a difficult situation due to lack of capital. Therefore, how to learn from the development experience of advanced foreign banks and vigorously carry out off-balance sheet activities has become one of the best choices for China’s commercial banks to get out of the current predicament.With Harbin Bank as its research object, the thesis analyzes the current situation of the off-balance sheet activities there by means of summarizing and concrete analysis, qualitative analysis and quantitative analysis. On this basis, the thesis pointed out the following problems existed in the off-balance sheet activities:the coverage of the products categories is not comprehensive; the risk-prevention ability of the off-balance sheet activities is insufficient; the pricing of the off-balance sheet activities is irrational. Then, the theory of economies of scale, Hain law and Marshall Equilibrium value theory are used and the following countermeasures are put forward correspondingly to tackle the problems in the guarantee-oriented off-balance sheet activities, commitment-oriented off-balance sheet activities and financial-innovation-oriented off-balance sheet activities:to apply the theory of economies of scope to the management of the off-balance sheet activities; to illustrate the role Hain law plays in risk-prevention of the off-balance sheet activities; to apply Marshall Equilibrium value theory to balance the banks’ pricing and customers’ demands to maximize the banks’benefits from products. In this paper, corresponding security recommendations were proposed for the better implementation of the policy.The author hopes that the research could help Harbin Bank to improve its market share.