The balance sheet of a bank is a financial statement of its liabilities and assets at a particular time, usually at the end of an accounting period, such as a quarter or a year. The business of the bank is reflected in the balance sheet. The financial position of the bank is made known through the balance sheet. It indicates whether the bank is sound and solvent or not. The balance sheet of a bank is of greater importance than that of a trading concern because a bank deals in others’ money and as such the entire community is interested in it.
Definition