The table shows (a) that banking institutions improve the majority of their funds by offering deposits—their principal obligation, and (b) which they hold their assets mainly by means of (i) loans and improvements and bills reduced and purchased, together constituting bank credit, (ii) investment, and (iii) money.
A explanation that is brief of primary components of liabilities and assets is offered below:
Liabilities of Banking institutions:
1. Capital and Reserves:
Together they constitute owned funds of banking institutions. Capital represents paid-up money, i.e., the actual quantity of share money actually contributed by owners (investors) banking institutions. Leer más