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Finance for non finance-I


How the Balance Sheet Works

The balance sheet is divided into two parts that, based on the following equation, must equal each other, or balance each other out. The main formula behind balance sheets is:

Assets = Liabilities + Shareholders' Equity
Assets, liabilities and owner s equity
Assets are what a company uses to operate its business,
liabilities and equity are two sources that support these assets.
Owners' equity, referred to as shareholders' equity i ....etc

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STATUTORY & OTHER RESTRICTIONS ON LOANS & ADVANCES
RBI has been issuing from time to time rules/regulations/instructions on statutory and other restrictions in respect of loans and advances to SCBs for implementation and to adopt adequate safeguards in order to ensure that the banking activities undertaken by them are run on sound, prudent and profitable lines, as under:-

A. Statutory Restrictions
Advances against bank's own shares
A bank cannot grant any loans and advances on the securi ....etc

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