A bank balance sheet, also known as T-Accounts, is a financial statement that shows the assets and liabilities of a bank at a specific point in time. It provides a snapshot of the bank's financial position.
Related terms
Assets and Liabilities: These are the two main components of a balance sheet. Assets are what the bank owns, such as cash, loans, or investments. Liabilities are what the bank owes, such as deposits or borrowings.
Demand Curve for Money: This refers to the graphical representation showing the relationship between the quantity of money demanded by individuals or businesses and its interest rate.
Reserve Requirements: These are regulations set by central banks that determine the minimum amount of reserves commercial banks must hold against their deposits.