Off-balance Sheet Activities of Commercial Banks
During the past couple of decades, financial institutions have sharply expanded their off-balance sheet activities. This trend has been fostered by the stepped-up pace of financial innovation. Financial innovation involves more than development and diversification of new borrowing sources. It also affects the entire range of financial intermediation, both domestic and international. In fact, the increase in the variety of financial services and products offered by financial intermediaries has impacted not just the assets and liability side of their balance sheets but also the off-balance sheet items as well.
KeywordsBalance Sheet Credit Risk Commercial Bank Political Risk Financial Innovation
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