Assets and Liabilities of Bank: Banking Awareness Preparation

Assets and Liabilities of Bank:

Assets and liabilities of a bank – It is an important banking awareness topic for preparation. In banking exams, the general awareness section will contain a few questions on the banking awareness topics. In the banking awareness topic, you can expect questions related to the banking terms, latest schemes of banks, latest technologies in the banking industry, etc. Here, we have discussed the assets and liabilities of bank. This is a very important banking terminology to be known by all the banking aspirants. here you can check various details such as definition, examples, classification, calculation, financial accounting, and the business aspects regarding the assets and liabilities of bank. In the comparison table, we have explained all these details of the assets and liabilities of bank. So that you can easily understand the concept of bank assets and liabilities.

What are Assets and Liabilities of Bank?

Assets and liabilities are two sides of the same coin known as financial accounting. No business can continue to survive without the creation of assets.


In the banking assets and liabilities topic, first, we can see about the assets. Assets of the bank can be valuable goods, types of equipment, and other things that can be easily converted into cash on immediate requirements. The bank’s assets can be the following:

  • Physical assets – Land, building, furniture, and other valuable items owned by the bank.
  • Cash present within the bank
  • Interest amount earned through the various loans.
  • Investments in government securities, treasury bills, etc.


In the banking assets and liabilities topic, next, we can see about the liabilities. The liabilities of bank are the amount of money that was owed by the bank. The bank’s liabilities can be the following:

  • The money deposited by the customers within the bank account.
  • The bank’s borrowings from other banks or RBI or any other organizations.

Comparison of Assets and Liabilities:

Here in this table, we have compared the properties and other important details of assets and liabilities.

Particulars Assets Liabilities
Definition Assets are resources (tangible and intangible) that your business owns, and that can provide you with future economic benefit. They add value to your business, they can help you meet your commitments and increase your equity. Liabilities are your business’ debts or obligations which you need to fulfill in the future. This is the money you need to repay, the goods you need to provide or the services you need to perform. These responsibilities arise out of past transactions and need to be settled through the company’s assets.
Definition in Simple words Assets means any property owned by a company that has monetary value is known as an asset. Liability means any debt which a company owes to a person or an organization
Depreciation From time to time Not Depreciated
Examples Accounts Receivable, Machinery, Cash, Furniture Accounts Payable, Bank Overdraft, Outstanding Expenses
Classification Fixed Assets, Current Assets, Liquid Assets, Wasting Assets, Intangible Assets, Fictitious Assets Long term Liabilities, Fixed Liabilities, Contingent Liabilities, and Current Liabilities
Calculation Capital + Liabilities Assets – Capital
Financial Accounting Assets get debited if there is an increase Liabilities tend to get credited if there is an increase in their amount.
Business aspect Assets are considered as good from a business point of view since it generates an inflow of cash over the coming years Liabilities, give rise to an outflow of cash over the coming years, due to which it is considered bad from a business point of view.
Balance Sheet While making the balance sheet, all the assets are placed first Once all the assets are computed, the liabilities are placed.


Guidely Online Mock Test Series

So, candidates prepare for the banking awareness topic – assets and liabilities here. In the baking awareness, surely you can expect a question regarding this topic.


Here we have added the FAqs regarding the assets and liabilities topic.

Q: What are the current assets of a bank?

A: The current assets of the bank include the liquidity assets that can be converted into cash in less than one year.


Q: What are the different types of assets?

A: The types of assets include fixed assets, current assets, tangible assets, intangible assets, operating assets, and non-operating assets.

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