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Rehan Rehan Nasir
by Rehan Rehan Nasir , Junior Internal Audit officer , Chemicals & Dyes

Liability side of bank's balance sheet is indicate that how much borrow bank from customer because normally liability side consist current liabilities.

Nkem Nwadike
by Nkem Nwadike , Assistant Lecturer , College of Agriculture Lafia. Nassaraw

current asset/current liability

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

Financial statements for banks present a different analytical problem than statements for manufacturing and service companies. As a result, analysis of a bank's financial statements requires a distinct approach that recognizes a bank's unique risks.

 

Banks take deposits from savers and pay interest on some of these accounts. They pass these funds on to borrowers and receive interest on the loans. Their profits are derived from the spread between the rate they pay for funds and the rate they receive from borrowers. This ability to pool deposits from many sources that can be lent to many different borrowers creates the flow of funds inherent in the banking system. By managing this flow of funds, banks generate profits, acting as the intermediary of interest paid and interest received, and taking on the risks of offering credit.

 

 

 

 

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