Balance Sheet Explained Simply

[@subhrajitchakraborty8170]

Thank you for this video ❤

[@Ego6817]

Bro can you explain what happens to Bank's balance sheet when bank transaction occours from one bank to another by account holder , instead of a withdrawal

[@subhrajitchakraborty8170]

@@Ego6817 suppose, Mr.A has a bank account in HDFC and he is transferring some money (let's say ₹10k) to SBI 🔸in HDFC's Balance Sheet Liability (i.e. Deposits, which is collected from Mr.A) would be reduced by ₹10k Assets (to meet the sudden demands from the depositors, banks maintain a Liquidity Reserve Ratio, where a fixed portion of total deposits are kept in the form of liquid assets) would be reduced by ₹10k 🔸in SBI's Balance Sheet - liability of SBI would be increased by ₹10k - assets (some portion maybe deposited to RBI, central bank of India, as Cash Reserve and other remaining portion would be kept as Statutory Liquidity Reserve) would be increased by ₹10k

[@SawkTheFighter13]

Assets are usually on the left side (aktiva) and capital and liabilities on the right (passiva)