Bank Balance Sheet

The first few items on the balance sheet of a bank are similar to the balance sheet of a regular company.

Bank balance sheet. Its main activity consists of using money from savers to lend to those requesting credit. Come under assets in the bank s balance sheet. An asset is something of value that is owned and can be used to produce something. A bank balance sheet is a key way to draw conclusions regarding a bank s business and the resources used to be able to finance lending.

This means that a bank s balance sheet is somewhat different from a company that is not a financial institution. The balance sheet of the bank is different from the balance sheet of the company and it is prepared only by the banks according to the mandate by the bank s regulatory authorities in order to reflect the tradeoff between the profit of the bank and its risk and its financial health. A bank is not like any other company. Schedules in a bank balance sheet.

You won t find inventory accounts receivable or accounts payable. For example cash securities etc. Cash is cash held on deposit and sometimes banks hold cash for other banks. Bank balance sheet is prepared differently from the company balance sheet.

There are three key areas of focus. The volume of business of a bank is included in its balance sheet for both assets lending and liabilities customer deposits or other financial instruments. Assets liabilities and bank capital a balance sheet aka statement of condition statement of financial position is a financial report that shows the value of a company s assets liabilities and owner s equity on a specific date usually at the end of an accounting period such as a quarter or a year. The balance sheet identity is.

Bank balance sheets report the assets liabilities and bank capital for an individual bank. Bank of america s balance sheet is below from their annual 10k for 2017. A bank s balance sheet a balance sheet is an accounting tool that lists assets and liabilities. For example the cash you own can be used to pay your tuition.

Assets liabilities capital the assets are items that the bank owns.