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6 Cards in this Set
- Front
- Back
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What are bank liabilities?
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External claims to assets.
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Name the different types of Bank Liabilities.
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Checkable Deposits.
Non-Transaction Deposits. Bank Borrowings. Bank Capital. |
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What is Bank Capital?
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The bank's net worth, which is the difference between total assets and liabilities.
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What is the function of Bank Capital?
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It acts as a cushion against a drop in value of assets, which could force the bank into insolvency and liquidation.
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What are Bank Assets?
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Uses of their funds.
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What are the four principles of Bank Management?
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Asset.
Capital. Liability. Liquidity. |
