Assets are possessions of a commercial bank plus its claims against other institutions and customers. They include;
- Cash in form of notes and coins.
- Deposits with other banks.
- Loans and advances/ overdrafts to customers.
- Securities (bonds, treasury bills, etc) bought by the bank from the central bank.
- Special deposits with the central bank.
- Reserves with the central bank.
- Long term investment in other institutions.
- Fixed assets owned by the bank e.g. land, buildings, vehicles, etc.
Liabilities are claims against the commercial bank by its creditors i.e. what the bank owes to other banks and non-bank institutions. They include;
- Capital contributed by shareholders (share capital/ paid up capital)
- Reserves payable to the central bank.
- Customers’ deposits.
- Dividends payable to shareholders.
- Deposits in the bank by other banks.
- Money borrowed from the central bank.
- Government funds deposited in commercial banks