Research On Financial Risk Control For Off-balance Sheet Business Of Foreign Capital Bank Y

Since the mid-1980s,the off-balance-sheet business of Western commercial banks has developed rapidly and has driven global financial innovation.Off-balance sheet business is relative to the traditional in-table business.It refers to the business which is not listed in the bank's balance sheet and does not constitute the real assets and liabilities,but has an impact on the bank's profit and loss.With the development of international integration and China's accession to the WTO,foreign banks have begun to enter China and injected fresh blood into China's financial industry.Since the coverage of the distribution of outlets in China's domestic banks is already very large,foreign banks generally maintain a small business scale in China.In addition to the development of traditional deposit and loan business,high-yield and innovative off-balance-sheet business is the main point of foreign banks in developing markets in China.High profitability brings high risk.Therefore,in-depth study of off-balance-sheet business and prevention for its financial risks has important significance for promoting the healthy development of foreign banks in China,and enhancing market competitiveness and improving risk resistance.This paper starts with the theoretical basis of off-balance-sheet business,clarifies its definition and its financial risk,introduces its types and characteristics in detail,analyzes and studies its hidden financial risks.Then,by using case analysis method and taking foreign bank Y as an example,researches its existing financial risk management mechanisms for off-balance-sheet business from the practical point of view,discovers and proposes the shortcomings and possible reasons for above mentioned mechanisms.Finally,puts forward suggestions for possible improvement regarding the above mentioned problems,and summarizes the key points of financial risk control for off-balance-sheet business for foreign-invested banks.It can not only bring certain guiding significance for banking development,but is also conducive to the government regulatory authorities to improve regulatory policies.It helps to promote the healthy and sustainable development of foreign-invested banks,and maintain the stability of the financial market.Most of the existing domestic research literature about the off-balance-sheet business is theoretical-oriented and based on the perspective of Chinese commercial banks.There are few empirical studies on the view of foreign-invested banks in China.This paper is based on foreign banks in China with the actual case of bank Y,introduces and analyzes the current risk control methods of foreign-invested banks for off-balance-sheet business,and suggestions are put forward based on the findings,which has enriched the related research field and has certain innovation and actual leading meanings.