Banking and Financial Assets

Bank Liabilities

• Demand Deposits: represent claims of depositors who withdraw their deposits by means of checks
• Time Deposits: represent claims of depositors who keep their money in the bank for a specified period of time and for which the bank must likewise be ready to pay at maturity
• Government Deposits: represent deposits, either time or demand, which belong to the government of its instrumentalities and political subdivisions
• Cashier's Check Outstanding: the bank's cashier issues checks to either pay the bank's obligations, to accommodate customers, or to remit funds
• Certified Checks Outstanding: the bank assumes the obligation of honoring the check when it certifies a depositor's check, making the instrument more acceptable
• Due to Banks: represents deposits or balances of other banks with the bank preparing the statement, including collection items paid for but not yet remitted by the bank requesting collection
• Letters of Credit Outstanding: the bank obligates itself to pay or guarantee payment, with a right of recourse against the customer whose credit it substitutes

Other Assets

• Government Securities: evidences of indebtedness fully guaranteed by the Republic of the Philippines in the form of bonds and other instruments of similar nature
• Other Securities: represent stocks and bonds or short-term investments not fully guaranteed by the Philippine government
• Bank Building, Furniture, and Fixture: represents the monetary value of the properties owned by the bank to carry on its functions
• Other Real Estate Owned: represents the monetary value of real estate foreclosed by the bank and carried in its books until disposed of
• Customer's Liability under Letters of Credit: represents the customer's obligation to reimburse the bank by virtue of the bank's commitment to substitute its credit for the borrower
• Customer's Liability under Acceptances: similar to the customer's liability under letters of credit, but with a greater magnitude of bank obligation

Other Cash Resources

• Exchanges for the Clearing House: consist of checks deposited at or cashed by the bank preparing the statement during the course of the day, drawn on banks within the city that are members of the clearing house
• Collections in Transit: consist of "out-of-town" checks or drafts drawn on banks outside the city, pending receipt of the proceeds
• Other Cash Items: include miscellaneous items such as bond coupons for which the depositors have been credited pending collection of the coupon

Due from Banks

• Due from Banks: represents deposits carried with other banks, usually in the form of demand deposits
• Balances with Foreign Banks: consist of deposits or funds held abroad mainly to fill foreign exchange needs

Loans and Discounts

• Loans and Discounts: a major item on the bank's asset side, consisting of all promissory notes and bills of exchange held by the bank evidencing the existence of a debt or securing a debt