For every commercial enterprise, not only assets are important, but also liabilities - operations that form bank resources. Stability, size and structure of resources are factors of reliability and affect the amount of profit.
Financial institution liabilities and their structure
Passive operations accumulate free funds of legal entities and individuals. This is very important, since these funds allow making investments, providing loans to the population, and meeting economic needs in fixed and working capital. Liabilities include authorized capital, funds, share premium, household deposits, investor assets, and much more. Banking liabilities are divided into two groups. The first group is the organization's obligations to depositors and banks (that is, passive lending operations). In this case, the bank is the borrower and the clients are the lenders. The second group - own and borrowed funds. These are operations that form their own resource and do not require a return.
Analysis of liabilities
The task of such an analysis is to determine the place of banks' liabilities in the overall structure of financial institutions, state and non-state. The analysis consists in comparing the projected indicators of financial liabilities with their calculated characteristics. Analysis of liabilities allows you to calculate the reliability of the bank. Distinguish between own bank funds and borrowed funds, for a reliable bank their ratio is more than one. Lower indicators indicate that there is a risk of default on deposits.
The percentage of borrowed funds shows what place a financial institution occupies in the general system of banks in the country. For the bank to work properly, this share should be at most 10-11 percent. Due to the fact that the banking market is not constant, it can be problematic to analyze the own funds of a financial institution. However, regular analysis of liabilities allows you to look into the future and assess the possibility of financial risks, which in turn helps to formulate an economically profitable strategy.
Analyzing the bank's own funds, it is necessary to assess the composition of liabilities, their dynamics, structure, changes in the authorized and additional capital. This analysis allows you to get an idea of the sources of the formation of funds. The data obtained as a result of the analysis of the bank's liabilities is used to draw conclusions about changes in their structure. Estimated indicators are calculated for sufficiently long periods. In this way, it is possible to predict future investments. In addition, the analysis of liabilities makes it possible to verify the reliability of the enterprise.
