OFF-BALANCE SHEET ACTIVITIES ON PERFORMANCE AND STABILITY OF COMMERCIAL BANKS: SYSTEMATIC LITERATURE REVIEW (SLR)

This paper investigates the nature of off-balance sheet activities and its role in performance and stability of commercial banks.Explain about depth of systematic literature review (SLR).We examined the trend of off-balance sheet activities with the help of contingent liabilities and total income of different ownership group of banks.It seems private banks are more effective than public sector banks in generating total income.Furthermore their treatment of off-balance sheet activities in terms of risk management seems sound as compared to public sector banks.The observations also indicate a positive relationship between contingent liabilities and the total income of different ownership groups of banks, as a research question seeking empirical evidence.This indicates an opportunity for banks to improve their overall profitability by engaging in different types of contingent liabilities.