Impact on Balance Sheet of Banks by Paying Daily interest on Saving

After paying daily interest on saving accounts, banks’ balance sheet will be affected from this. Interest on saving account is expense of banking business which reduces net profit which is shown in reserve and surplus in the liability side of balance sheet of bank.

On the other side, by increasing total amount of interest due to this reason, cash balance in the balance sheet will reduce. So, Bank has to make new working capital policy in long run. But this decision can increase the amount of saving means more cash inflow may be added because customer may feel enjoy high earning with security on saving account.

It can also affect loan amount in balance sheet of banks because if bank will not receive high saving cash after this, bank’s cash balance will reduce due to paying daily cash and we can see some less amount of loan in next balance sheet. But all most, there will not very high impact on the balance sheet of banks by paying daily interest on saving.



"accounting software" "cost accountant" "financial management" account accountant accounting accounting education accounting format accounting glossary accounting questions accounting software accounting Term ad advertising american express answer auditing balance sheet bank bba BCA bonus business Business Dictionary CA CA- IPCC CA-CPT CA-Final capital career Category cfa children coaching company conferences Consignment Accounting contact corporate accounting Correction of Spelling and Grammar Mistakes cost cost accounting CPT credit card debit card debt degree depreciation dictionaries donation earning ecommerce economics education Events finance Finance Dictionary financial financial accounting financial mathematics Financial Ratios forex management free funds google google apps google talk guest writer Help Center ICWAI IFRS inspiration insurance terms interest journal entries lectures List management accounting mathematics MBA MCA media mutual funds ngo notes overhead pdf pnb presentation Prof. Vinod profiles quickbooks quiz ratio rbi reporting Service Tax shares solution students tally tax teacher teaching Test Testimonials tips treasury management tutorial UGC NET Commerce video webinars Wikipedia working capital
Education : Impact on Balance Sheet of Banks by Paying Daily interest on Saving
Impact on Balance Sheet of Banks by Paying Daily interest on Saving
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock