bank's balance sheets- what is an asset, what is a liability?

Answer 1

Bank Balance Sheet.

Assets : Cash in other banks, loan portfolio, receivables, buildings...

Liabilities : All the deposits that the bank holds, as well as debts of the bank towards other businesses

The loan portfolio (that is, all the loans that the bank has granted and that are being repaid over time) is an asset to the bank because 1) it generates revenue, and 2) it can be sold to another financial institution

The deposits portfolio is a liability to the bank because 1) that money is owned by the public and 2) it costs money to the bank

Answer 2

A Bank's Balance Sheet is a bit confusing as they have assets like other companies (Buildings, Computers, etc.) but all the loans they have given are their assets too. Their liabilities include all the bank balances, savings accounts and deposits that customers hold with them.

Answer 3

Listen to Hakeem. A bank's balance sheet can be somewhat confusing because the bank is the counterparty (opposite) to YOUR loans and deposits.

Most people consider deposit accounts assets and loans liabilities. For the bank, it is the opposite. Maybe it helps to think of it this way: A bank earns interest on loans and pays interest on deposit accounts.

Hope this helps.

Answer 4

Assets are things that you own, money in the bank, etc. Liabilities are bills you owe, mortgages, etc.

Answer 5

an asset is money in the bank or real property
A liability is money you owe.

Answer 6

An asset is that which enriches you. (property, stocks, etc) Liabiliies are moneys owed; debts or pecuniary obligations

Answer 7

assets is what you own and liabilities are what you owe....AWE= assets, withdrawls, and expenseses....LEO= liabilities, and owners equity