18 Questions
What does a bank's balance sheet show?
The value of assets and liabilities, and the size of equity
Which of the following is considered a main asset on a bank's balance sheet?
Credit portfolio
Why are the savings deposited with a bank recognized as a debt obligation?
Because they are temporarily borrowed from the public
What is the liabilities business of a bank related to?
All operations carried out by different bank departments
Why does a bank refer to the saver as a creditor?
Because the saver has entrusted funds with the bank
What is considered as the interest paid to a saver by a bank?
Credit interest
What is the main reason for recognising actual share ownership on the personal balance sheet of the customer and not the bank's balance sheet?
To avoid impacting the bank's solvency ratio
If a bank is described as 'solvent', what does this indicate?
The bank can cover its liabilities with available assets
Why is it important for banks to be prepared for a 'bank run'?
To maintain their liquidity position during sudden withdrawals
How does including Securities and Real Estate in a bank's assets impact its liquidity?
It increases liquidity by providing assets that can be easily liquidated
In the context provided, what would happen if customers suddenly withdrew more than € 1 billion in savings?
The bank would face challenges in covering the withdrawals
What is one main reason for banks to reduce the amount of Credit Provided on their balance sheets?
To enhance their credit portfolio quality
What is the total amount of assets held by the bank according to the balance sheet?
12,000 million Euros
How much equity does the bank have based on the balance sheet?
1,000 million Euros
What are the two types of credit provided by the bank according to the text?
Consumer credit and mortgage credit
Which of the following is classified as a liability in the bank's balance sheet?
Balance saving accounts
In terms of risks faced by banks, which risk category involves the risk of not being able to meet financial obligations as they fall due?
Credit risks
What type of risk is associated with the potential for losses due to adverse movements in interest rates?
Interest rate risks
Learn about the balance sheet of a bank, which shows the value of assets, liabilities, and equity at a specific point in time. Discover the main liabilities (funds entrusted by the public) and assets (credit portfolio and investments) of a bank.
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