### Question
How does WALL STREET REFORM AND CONSUMER PROTECTION define off-balance-sheet activities?


### Answer
Under *12 U.S.C. § 5365*, **off-balance-sheet activities** is defined as:

> an existing liability of a company that is not currently a balance sheet liability, but may become one upon the happening of some future event, including the following transactions, to the extent that they may create a liability:


(A) Direct credit substitutes in which a bank substitutes its own credit for a third party, including standby letters of credit

#### Citation:
  - *12 U.S.C. § 5365*
  - Heading: **CHAPTER 53-WALL STREET REFORM AND CONSUMER PROTECTION > SUBCHAPTER I-FINANCIAL STABILITY > Part C-Additional Board of Governors Authority for Certain Nonbank Financial Companies and Bank Holding Companies**

