Liabilities of the bank - part of the balance sheet

Liabilities of the bank - part of the balance sheet, reflecting in monetary terms, the sources of the funds of the bank. Depending on the source of all bank liabilities differ in terms of attraction and value. Terms of the cost of raising funds depends on the ability of banks to ensure their rational distribution and allowable profit shareholders. Liabilities of commercial banks - those resources that are implemented at the expense of credit, investment and other active operations. Resources are divided into their own, borrowed and borrowed. By their own resources, or to bank capital are owned charter, reserve and other funds established to ensure financial stability, trade and economic activities of the bank, as well as retained earnings of the current and previous years. Shareholders' equity commercial bank performs primarily a protective function - insurance interests of depositors and creditors, as well as covering current losses from banking activities. Equity capital of the commercial bank is divided into primary and secondary. For fixed assets include charter and reserve funds and retained earnings from previous years. Supplementary capital consists of total reserves on active operations and current income. The procedure of forming the statutory fund depends on the shape of the organization of the bank - through a public offering of shares (public company) and by the redistribution of shares among the founders of the bank according to the size of their parts in the share capital (private company). Category: Management Operations Commercial Bank