The banks balance sheet

A banks balance sheet lists the asst, liabilities, and equity capital held by or invests in the bank on any given date.

So, assets = liabilities + equity capital

Assets include four major kinds of assets

1. cash in vault and deposits held at depository institutions ©
2. Government and private interest bearing securities purchased in the open market (S).
3. Loans and lease financing made available to customers (L).
4. Miscellaneous assets (MA).

Liabilities fall into two categories

1. Deposits made by and owed to various customers (D).
2. Nondeposit borrowings of funds in the money and capital market (NDB).

Equity capital represents long term funds the owners contribute to the bank (EC).

                      

                             

                                         C+S+l+MA=D+NDB+EC

The Balance sheet (Report of Condition)
Assets Cash Liquidity security holding Investment securities Loans: Consumer Real estate Commercial Agriculture Financial institutions Miscellaneous loans and leases Miscellaneous assets	liabilities and equity Deposits: Demand NOWs Money market Savings Time Nondeposit borrowings Equity capital: Stock Surplus Retained earnings Capital reserves

Income statement

Revenues Loan income Investment income Noninterest sources of income Expenses: Interest paid on deposits Interest paid on nondeposit borrowings Salaries and wages Provision for loan losses Other expenses Income before taxes and securities transactions Taxes Gains or losses from trading in securities Net income after taxes and securities gains or losses