What Are the Assets of a Commercial Bank

Bank assets consist mainly of various kinds of loans and marketable securities and of reserves of base money, which may be held either as actual central bank notes and coins or in the form of a credit (deposit) balance at the central bank.

What are the main assets and liabilities held by commercial banks?

The table shows (a) that banks raise the bulk of their funds by selling deposits—their dominant liability, and (b) that they hold their assets largely in the form of (i) loans and advances and bills discounted and purchased, together constituting bank credit, (ii) investment, and (iii) cash.

Does commercial bank have inventory?

Working Capital and a Bank’s Balance Sheet Given the nature of a bank’s business, calculating working capital is an impractical endeavor. A bank’s balance sheet does not contain inventories or typical accounts payable. Banks do not produce physical goods. Instead, they borrow and lend funds.