What are the major types of assets and liabilities for commercial banks?

        A major type of assets and liabilities can be explained based on its duration means either short-term or long-term. Commercial banks have short-term liabilities such as deposits held for less than one year or short-term loan acquired by the commercial from other commercial banks. Capital and Reserves are also acquired by the Banks, which is also the liability for the commercial banks of long-term nature. They have short-term assets as short-term loans extended to the borrower and long-term assets are such as long-term loans and other strategic investments held by the banks (Dombret, 2014).

        Commercial banks sell investment securities because they need funds to be investing in a project, which seems to be profitable to them. Banks also make investments of the strategic or non-strategic nature to increase the profit margins and accordingly leading the things forward. Sell the investment securities can be on the condition of sharing profit or just paying the interest on it as per the market rates (Mayes, 2013).

        The major advantage is to the bank expanding its services in the international market as they can enhance their business revenues, international market is huge and bank do not have be limited to the local market. There are also disadvantages expanding in the international market, which can of three types. The first disadvantage is lack of knowledge to the business environment, which often results in loss (Neave, 2012). The second disadvantage is complex business environment and arrangements, which often higher cost and takes long time to cover initial investment. The third disadvantage is often occur huge business losses to the banks.

References of assets and liabilities for commercial banks?