Definition
- Balance sheet
- A balance sheet is an accounting tool that lists what a bank owns, its assets, against what it owes, its liabilities.
- Not to be confused with: Bank capital
- Bank capital is the difference between a bank's assets and its liabilities, in other words its net worth.
Test yourself
What is the difference between balance sheet and bank capital?
The balance sheet lists everything the bank owns and owes; capital is the one figure left once liabilities are taken from assets.