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12 March, 2022

Explain liability structure financial institutions

 Liability Structure refers to deposit sources of funds that comprise to-

       Core deposits of regular bank customers

       Purchased deposits are acquired on a non-personal basis

       Demand deposits, small time and savings deposits, large time deposits

       Liability management is based on purchased funds.

       Brokered deposits

The components of liability structure are-

1. Amounts owed to central banks

2. Amounts owed to credit institutions

3. Amounts owed to customers

4. Debts evidenced by certificates

5. Liabilities (other than deposits) held for trading

6. Provisions

7. Subordinated liabilities

8. Other liabilities

9. Capital and reserves