The difference between off-balance-sheet business and intermediate business

Intermediate business is more traditional and less risky; Off-balance-sheet business is more innovative and risky.

Simply put, off-balance sheet business can involve the bank itself, which is not reflected in the balance sheet according to accounting standards, but it will affect the current profit and loss; Intermediary business does not involve banks, and banks only play the role of intermediaries.

1 Off-balance-sheet business: Take the bank acceptance bill as an example. When the issuer issues the bank acceptance bill and pays it normally, it has no impact on the bank's balance sheet; But bank acceptance bills are guaranteed by banks. Once credit risk occurs, banks need to accept it with their own funds, which will affect the bank's profit and loss.

Intermediate business: for example, dealing with short messages, e-banking, selling gold, insurance, funds, etc. Among them, banks do not involve investment.

The above is about the sharing of off-balance-sheet business and intermediary business, and I hope it will be helpful.