Respuesta :
When a commercial bank grants a loan from its excess reserves, the assets on its balance sheet will increase.
What does having extra reserves mean for a commercial bank?
- Capital reserves stored in excess of what is required by regulators, creditors, or internal controls are known as excess reserves by a bank or financial institution.
- Excess reserves for commercial banks are compared to standard reserve requirement amounts established by central banking regulators.
- An item that a commercial bank owns or owes to the bank is referred to as an asset (cash, securities, loans, etc...). A claim made against the bank by non-owners (such as checkable deposits, etc.) and the bank's owners is referred to as a liability.
- The bank's net worth is represented by this final liability. By definition, the balance sheet must be positive. That is, for the bank to assure proper accounting of transactions, the total of assets must equal the total of liabilities plus net worth.
- The principal assets of a bank are cash in the vault, reserves, securities, and loans (this last one is relatively small when compared to the others). Checkable deposits are the bank's main claim.
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