Off-balance-sheet business for a bank refers to:

Question

Quizplus · Accepted Answer

Off-balance-sheet business refers to transactions that are currently only a contingent liability, meaning that they are not yet recorded on the balance sheet but may potentially become liabilities in the future. Examples of off-balance-sheet business include loan commitments, standby letters of credit, and interest rate swaps. Deposits, loans, and consumer loans in default are typically recorded on the balance sheet as assets or liabilities. Call deposits that may be withdrawn on demand are also typically recorded on the balance sheet as liabilities.

Off-Balance-Sheet Business for a Bank Refers To