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Liabilities and Assets of Scheduled Commercial Banks (Main products) The table shows (a) that banking institutions improve the almost all their funds by attempting to sell deposits—their principal obligation, and (b) they hold their assets mainly by means of (i) loans and advances and bills discounted and bought, together constituting bank credit, (ii) investment, and (iii) money. A brief description for the primary components of liabilities and assets is offered below: Liabilities of Banking institutions: 1. Capital and Reserves: Together they constitute owned funds of banking institutions. Capital represents capital that is paid-up i.e., the actual quantity of share money really [...]

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