Question: Could you please help me with the question which is below? Thank you. Carefully read the following Balance Sheet. Balance Sheet of XYZ Bank Assets.
Could you please help me with the question which is below?
Thank you.
Carefully read the following Balance Sheet.
Balance Sheet of XYZ Bank
Assets. 31/12/2009. %of Assets
Cash. $100,00. %4
Securities. $580,00. %20
Loans. $1.800.00. %64
Other Assets. $350,00. %12
Total Assets. $2.830,00. %100
Liabilities&Equities
Deposits. $1.720,00. %61
Borrowings. $790,00. %28
Shareholder's Equity $320,00. %11
Total Liabilities and
Equity $2.830.00 %100
Assignment : A bank balance sheet is different from a typical company. Explain the differences?
Looking at the percentages, comment on the Assets and Liabilities of the above Balance Sheet. Why do bank managers prefer Loans over Securities? Why is cash only 4%?
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