On the Improvement of the Accounting System of Off-Balance Sheet Product of Domestic Commercial Banks
|School||Southwestern University of Finance and Economics|
|Keywords||Commercial bank Off-balance sheet product Accounting system|
Since1980th, liberation of economics and financial integration has greatly influenced international banking system. To take hold in a real jungle, international banks in western countries are diligent in R&D of new products, improving service and broadening business scope. Off-balance sheet product, as a fierce weapon in promoting profits, is playing a more and more important role in international banks.During the cooperation and competition with foreign banks, domestic commercial banks in China have realized the importance of off-balance sheet products and began to develop this kind of banking products, which could preserve regular customers and bring new customers. The managements of domestic commercial banks have plunged in plenty of money and personnel in development of off-balance sheet products.In recent years, domestic banks cannot attain huge profits by traditional products alone. To keep the profit and to satisfy both corporate and individual customers, commercial banks provide various financial products, which include off-balance sheet products. Although most domestic commercial banks do not have enough professional researchers to develop off-balance sheet products, these banks use different ways to improve their financial services in this field. They believe that off-balance sheet products have very bright future.This essay firstly introduces the general idea of off-balance sheet products and the main kinds of this product. Then the essay compares the development of the product in foreign and domestic commercial banks and points out the problems and difficulties of off-balance sheet products in China. The fourth chapter of the essay proposes constructing a comprehensive off-balance sheet accounting system and recommends ways to increase off-balance sheet products development for domestic commercial banks.