What is OFF BALANCE SHEET CONDUITS?

The issuance of highly rated commercial papers is carried out by financial institutions through the use of this instrument. It is treated as a separate entity that is not registered on the balance sheet. The financial institution’s use of such instruments limits their disclosures while exposing them to the associated debts.

More On This Topic



Link to This Definition
Did you find this definition of OFF BALANCE SHEET CONDUITS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary