·BOO-, Financial Reports. For Quarter Ending 12/31/20 Pirst Bank 2009 B01: Balan
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·BOO-, Financial Reports. For Quarter Ending 12/31/20 Pirst Bank 2009 B01: Balance Sheet Page 2 B02: Income Statement Page 3 B05: Risk Management SummaryPage4 B06: Punds ManagementPage5 B10: Security Maturities and Portfolio Activity Page 6 B12: Security Portfolio Page 7 B22: Loan Profitability and Performance --Page 9 B24: Loan DecisionsPage 10 B40: Deposit Activity and Performance Page 11 B44: Deposit and Marketing Decisions Page 12 B64: Treasury Managment, Dividends and Forecast Earnings Page 13 C91: Bank Balance Sheets Page 14 C92: Income Statements Page 15 C93: Community Loan and Deposit Markets Page 16 C94: Community Bank Capital Activity -Page 17 C9s: Economic Charts Page 18 C96: Economic Reporter Page 19 BankExec' is a product and a protected mark of the American Bankers Association.Explanation / Answer
The balance sheet of a bank is different from that of a normal company. Most of the usual assets and liabilities you will find in a company's balance sheet don't appear in a bank's balance sheet.
As ar as categorisation and distribution of assets are concerned you won't find inventory, accounts receivable, or accounts payable. Instead, under assets, you'll see mostly loans and investments, and on the liabilities side, you'll see deposits and borrowings which of course are the result of operations of the bank during the year.
To understand how were the assets put under each category , a close examination of the things that can be a part of that category would help.
1. Cash
Under cash the bank consolidates all those amounts it holds in the form cash. Cash is very important for a bank to operate. The main business of bank is to accept deposit and lend money. It has to cater to the withdrawal needs of people, pay bills, fill ATMs , maintain statutory reserves, etc. The balance of cash at the end of the year is obtained from rough cash books and fair cash books which are maintained by banks.
2. Securities
Securities are the short term investments of the banks
These can be encashed when banks are in need of money. These are also called secondary reserves.
3. Loans
Definitely, loans and advances of the bank forms a major proportion of its assets. Loans and advances are assets because banks have lented this sum and is warning interest on the loan advanced and will get the principal repaid. Banks offer different types of loans to customers. Some common being business loans, housing loans, educational loan, vehicle loan ,personal loan and so on.
4. Premises
It means the value of the premises the bank owns it is the amount of the branch offices, etc
5. Other assets
Any such thing through which the bank earns income which do not fall under any of the above mentioned categories will be categorised as other asset.
Like any other organisation banks also maintain primary books of entry and ledger accounts. At the time of preparation of balance sheet data from all branches are centralised and usually in headquarters with the help of accounting experts income statement and balance sheet are prepared.
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