Looking At The Bank 's Balance Sheet Essay

2169 Words Mar 7th, 2016 null Page
1. Looking at the bank’s balance sheet (report B01), what is your assessment of its overall situation? Do you observe any trends that appear especially favorable or unfavorable? The bank’s balance sheet shows trends that are both favorable and unfavorable. Cash items were at 31.740 at the end of the first quarter and grew to 38.162 by the end of the last quarter, which is favorable because if cash items are increasing, that means you’re making more money for reserves and currency. When looking at the federal funds sold for this years balance sheet, it seems like we only took out one short-term loan of 8.611 (which was paid off by 6/30/19); this is favorable because since then, there have not been any other short-term loans taken out as of 12/31/19. For the past year, the premises has been around 15.5 on average, which is favorable because when you invest in premises, it helps the volume of the bank and makes it so you are more efficient, so having a high premise of 15.5 is favorable. For other assets, as of 3/31/19, the bank’s other assets were at 29.966 has slowly increased to 34.386 as of 12/31/19. This is a good number to be at for the loans and deposits that are being taken out, but the bank should be cautious so they don’t increase a lot in the next quarters or they could potentially be in debt. Within the last year, total deposits are all increasing, which is favorable because with the money increasing in those accounts, it means you are gaining interest on them…

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