Balancing Alaskan banks.

• Author: Steffens, Michelle
• Position: Alaska Trends

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In accounting terms, a bank's value at a given point in time is determined using the balance equation assets = liabilities + equity.

Assets are items owned by a bank that add value to the company. Assets typically include cash, receivable balances from depository institutions, securities, federal funds sold, receivable loans and leases, trading assets, fixed assets, subsidiary investments, real estate and intangible assets (i.e. goodwill).

Liabilities are bank obligations owed to other parties due to past transactions. Liabilities consist of all interest and non-interest bearing deposits, federal funds purchased, trading liabilities, executed and outstanding acceptances, and subordinated notes...