Basic banking
differences in EU countries belonging and not to belonging to Euro area + latest
regulations).
The bank's balance sheet immediately after establishment is described by
Figure 1a.
Balance sheet 1a. Establishing the bank
Assets ( ths.) Liabilities ( ths.)
Cash 5000 Bank Capital 5000
If the banks' only task where to give their depositors a safe place to keep their
money the balance sheet of the bank after acquiring the deposits in the amount
of 40000 ths. would look as described below.
Balance sheet 2. Deposits inflow.
Assets ( ths.) Liabilities ( ths.)
Cash 45000 Deposits 40000
Bank Capital 5000
Neither owners nor the depositors would be happy with the situation in so called
annaabi.ee 
