Exploring Bank Balance Sheet
A bank’s balance sheet is not just a financial statement — it is a map of how money flows through the economy. Unlike a typical company, a bank’s “raw material” is money itself. It borrows short-term (deposits), lends long-term (loans), manages risk, and operates under strict regulatory capital constraints. Understanding a bank’s balance sheet is essential to understanding credit cycles, financial stability, and how monetary policy actually transmits into the real economy. Click here to read