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What is the difference between Loan Loss Reserves and Loan Loss Provisions?
loan loss reserve: loans are going to default so banks use part of provision to book reserve. loan loss provisions: percertage of gross loans that all banks have to keep in their balance sheet as regulated
What do you mean by Retained Interest in off-balance sheet securitized loans?
what does shrect mean
What is the largest single asset in the federal reserve banks' consolidated balance sheet?
Securities.
Effects of bad debts on bank's profitability?
Bad Debts usually have a negative effect on a banks balance sheet and profitability. Bad Debt stands for loans that are granted to customers who would not repay them back. These are losses for the bank and hence all this money features as loss in the banks accounts which in turn reduces the banks profitability.
Difference between loan payable and loan receivable?
loans payable apear under liability on the balance sheet.
What banks offer low interest boat loans?
"To find low interest boat loans, you should check with local banks in your area. You could check their websites, call them to speak to a representative, or stop in at a branch and ask for a rate sheet."
Is Loan on balance sheet or off balance sheet?
Loan is on balance sheet
Why do you calculate loans and advances on the asset side of the balance sheet?
Loans here means the loans given to other companies/subsidiaries. The company will receive an interest on these loans and hence is an asset. Advances means any payments to staff as an advance.
Difference between on balance sheet financing and off balance sheet financing?
In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.
What do banks do with their excess reserves?
Banks use excess reserves to make loans to customers so that they can make profits on the interest Commercial banks cannot use excess reserves to make common loans. They can only use them to make loans to other banks who may need more required reserves. Excess reserves increase the monetary base but do not enter the M1 or M2 money supply. The only entity that can effect the total excess reserves is the Federal Reserve. When the fed decides to reduce its balance sheet, it will sell assets in the market and reduce an equal amount of excess reserves.
Why fixed deposits and public deposits are unsecured loans and in balance sheet?
fix deposits are not collateralised. that's why they are called unsecured loans every asset and liability comes in B/s
Is it true that the balance sheet discloses all the assets and liabilities of a bank on one form?
The balance sheet is an accounting tool with two parts. The assets are totaled up on one section, and the liabilities are all listed out in the second section. The balance sheet is not only used for banks but is used for almost any company.
