Off balance sheet items are in contrast to loans, debt and equity, which do appear on the balance sheet. Most commonly known examples of off-balance-sheet items include research and development partnerships, joint ventures, and operating leases. Among the above examples, operating leases are the most common examples of off-balance-sheet ...
The Impact of New Banking Regulations on Corporate Relationships — Looking from the Inside Out . Regulators worldwide are working to reduce risk in the inancial markets, and banks are at the center of these efforts. Using the lessons learned during the 2008 inancial crisis, regulators are instituting measures to help ensure – Specific items of the balance sheet – Detailed revenue categories – Sales units – Number of customers • Alternative or Supplement: – Do comparison on expense ratios • Expenses per unit of revenue • Expenses per average customer • Expenses per unit of output 1 Government Accounting, Reporting & Budgeting Workshop 2007 Presented to the City and County of San Francisco by the Office of the Controller and Pete Rose, CGFM
Off-balance sheet activities include items such as loan commitments, letters of credit, and revolving underwriting facilities. Institutionsare required to report off-balance sheet items in conformance with Call Report Instructions. The use of off-balance sheet may improve activities earnings ratios because earnings generated from the COMMERCIAL BANK’S OFF-BALANCE SHEET ACTIVITIES 1245 have allowed banks to avoid certain regulatory costs such as minimum reserve, deposit insurance, and capital adequacy requirements. While, some of the off-balance sheet instruments lead to risk reduction, others increase the risk exposure of the