Commercial Bank Balance Sheet

Assets of a commercial bank include advances (loans), investments in securities, money at call and short notice (inter-bank lending), and other earning assets. Deposits are liabilities of a bank, not assets—they represent funds that customers have placed with the bank, creating an obligation to repay. This fundamental accounting distinction is critical: assets generate income through lending, while liabilities (like deposits) require returns or repayment obligations. > Bank assets: Advances, investments, call money. Bank liabilities: Deposits, borrowings.