WHAT ARE LIABILITIES AND ASSETS IN A BANKING SECTOR

Question

Accepted Answer

Liabilities are what the bank owes to others, while assets are what the bank owns.

Liabilities include deposits, loans, and other debts owed to customers and other banks.
Assets include cash, investments, and loans made to customers.
The bank's balance sheet shows the total liabilities and assets.
The bank's goal is to have more assets than liabilities to remain financially stable.

Accepted Answer

In the banking sector, assets and liabilities refer to the financial elements that define the bank's operations and financial health. Here's a breakdown:

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Liabilities

Liabilities represent what the bank owes to others. These are the sources of funds for the bank.

Key Examples:

1. Deposits from Customers

Savings accounts, current accounts, and fixed deposits.

These are the largest liabilities, as the bank has to return this money to depositors when requested.

2. Borrowings

Loans taken by the bank from other banks, financial institutions, or central banks.

Includes interbank borrowings or funds from international markets.

3. Other Liabilities

Bonds or debentures issued by the bank.

Interest payable on deposits or borrowings.

Other short-term obligations like trade payables.

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Assets

Assets represent what the bank owns or earns

Accepted Answer

Liabilities in banking sector Which as well as deposit  balance and employees pension the bank liabilities and Assets are bank sector loan ,cash , investment,and fixed deposit,are these all products a banking.

Accepted Answer

Assets are cash, investment.
Liability includes debtsowned to customer and other banksd,eposite loans.

Accepted Answer

Nationalised banks are owned by the government while private banks are owned by individuals or corporations.

Nationalised banks are established with the aim of providing banking services to all sections of society, especially the rural and semi-urban areas.
Private banks are profit-oriented and focus on providing services to the urban and affluent sections of society.
Nationalised banks have a wider network of branches and ATMs across the country.
Private banks have a smaller network of branches and ATMs, but offer more personalised services.
Examples of nationalised banks in India include State Bank of India, Punjab National Bank, and Bank of Baroda.
Examples of private banks in India include HDFC Bank, ICICI Bank, and Axis Bank.

Accepted Answer

Liabilities include deposits, loans, and other debts owed to customers and other banks.
Assets include cash, investments, and loans made to customers.
The bank's balance sheet shows the total liabilities and assets.
The bank's goal is to have more assets than liabilities to remain financially stable.

WHAT ARE LIABILITIES AND ASSETS IN A BANKING SECTOR

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