Describe the typical commercial banks’ balance sheet as well as its main items and describe the...

Describe the typical commercial banks’ balance sheet as well as its main items and describe the structure of a typical investment banks’ balance sheet as well as its main items.

Expert Solution

ANS: Balancesheet of any entity shows the True & Fair view of its financial position. It's shows the position of Assets & Liabilities as on the particular date (31st march) of any financial year.

Balancesheet of Commercial Bank shows the picture of its functioning, its liquidity, risk assets, Non- performing Assets & so on.

Format of Commercial Bank Balancesheet

Liabilities	Schedule No.	Amount
Capital	1
Deposit - Saving, Current, FD etc	2
Borrowings	3
Other Liabilities & Provision	4
Total		XXXX
Assets
Cash Balance with RBI	6
Balance with Bank	7
Investment	8
Advances	9
Fixed Assets	10
Other Assets	11
Bills of Exchange	12
Total		XXXX

Investment bank is a financial intermediary that put its hand into various sector/segments such as- buying & selling of Securities, underwriter, broker, financial advisior, issuing Initial Public offer, etc

Format of Balancesheet of Investment Bank

Liabilities	Amount
Shareholders fund i.e common stock & preferred stock
Reserve fund
Loan fron central bank
Deposits from customers
Trading liabilities
Any other debt
Total	XXXX
Assets
Cash in hand & Balance with central bank
Treasury Bills
Loans & advances
Intangible assets such as goodwill, patents, Know-how
Plant, property & equipments
Other assets
Total	XXXX

jeff jeffy answered 2 years ago

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