BALANCE SHEET OF XY BANK
ASSETS 03/12/2009 % OF ASSETS
cash $100.00 4%
securities $580. 00 20%
loans $1800.00 64%
Other assets $350.00 12%
Total assets $2830.00 100%
LIABILITIES & EQUITY
Deposits $1720.00 61%
Borrowing $790.00 28%
ShareHolders Equity $320.00 11%
TOTAL LIABILITIES EQUITY $2830.00 100%
After reading all the available information carefully, prepare a two page (double-spaced) essay presenting the consulting firm and answer the following questions:
A bank balance sheet is different from that of a typical company. Explain the differences.
Looking on the percentages, comment on the Assets and Liabilities of the above Balance sheet. Why do bank managers prefer Loans over Securities? Why is cash only 4%?
The assignment is about the balance sheet of a bank, how different it is from the balance sheet of a non-financial company etc
Cite references to material that you use in preparing the essay.