Commercial banks Balance Sheet Flashcards
(6 cards)
1
Q
What are the balance sheets
A
Record of all assets, liabilities and capital at any given point in time
2
Q
How must assets balance?
A
Assets = liabilities + capital
3
Q
What does balance sheet show?
A
The health of economic activity of commercial banks.
4
Q
What are liabilities?
A
Deposits, short term borrowing, long term borrowing, shareholders funds, retained profits.
5
Q
What are assets? In order of liquidity
A
- Cash
- Reserves of BoE
- Money of call at short term notice
- Long term investments
- Advances
- Fixed assets
6
Q
What part of liabilities are capital?
A
shareholders funds and retained profits.
