What Is a Reference Asset?

Commercial bank assets are resources formed by past transactions or events of commercial banks, owned or controlled by commercial banks, and expected to bring economic benefits to commercial banks. The main contents include lending, investment (securities investment, cash asset investment, fixed asset investment), leasing, foreign exchange trading, bill discounting, etc., the most important of which are loans and investments.

Bank assets

Commercial bank assets are resources formed by past transactions or events of commercial banks, owned or controlled by commercial banks, and expected to bring economic benefits to commercial banks. The main content includes lending, investment (securities investment,

There are two types of division of commercial bank assets, one is based on the balance sheet composition, and the other is based on the requirements of bank management.

Balance sheet composition

From the balance sheet analysis, the assets of a commercial bank are composed of three parts, namely current assets, long-term assets, and other assets. Current assets refer to assets with strong liquidity, including cash on hand, deposits in the central bank, deposits in the same industry, funds withdrawn, short-term loans, short-term investments, investments due within one year, and other current assets; Assets refer to various assets with a term of more than one year, including medium and long-term loans, overdue loans, long-term investments, fixed assets, and other long-term assets.

Classification of business bank management requirements

According to the requirements of commercial bank operation and management, assets of commercial banks can be divided into five categories: cash assets, loan assets, securities assets, fixed assets, and foreign exchange funds. Cash assets are necessary for bank operations to maintain liquidity; loan assets and securities assets are the main part of bank assets and the main source of bank profits; fixed assets are the material conditions necessary for bank operations; foreign exchange funds are impossible for bank operations Avoiding capital occupation. Commercial banks' asset management will have an important impact on the entire social and economic life. ^[1]