Asset Liability
- March 18, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Asset Liability
Subject : Economy
Section: Monetary Policy
Context: The recent developments in the US banking system drive home the importance of ensuring prudent asset liability management, robust risk management and sustainable growth in liabilities and assets in the banking sector, among others, according to Reserve Bank of India Governor Shaktikanta Das.
Concept:
Banks’ asset-liability profiles
- A balance sheet is an accounting tool that lists assets and liabilities.
- Every scheduled bank is required to furnish in the prescribed form to the Reserve Bank of India on a fortnightly basis on reporting Fridays and Last Fridays of the month statement showing its liabilities and assets in India in terms of Section 42(2) of the Reserve Bank of India Act, 1934.
- This return provides up-to-date information on deposits, advances and investments etc of banks.
Asset | Liability |
Assets comprise such items that can be comprehended as the components of the property, which a company or an individual owns. They possess a certain worth which can be used to meet their respective accountabilities such as commitments, legacies and debts. | A liability is a debt or something which banks owe. Liabilities refer to the accountabilities of an entity or individual, which is necessary to be accomplished. |
Various assets:
| Various liabilities:
|