Sectoral differences in core business activities and risk exposures are well reflected in the balance sheets typical of firms within each sector. In order to illustrate such differences, stylised balance sheets for institutions from each sector are presented in Annex 2 of the report for explanatory purposes. These stylised balance sheets suggest the following broad patterns. The majority of a bank’s assets typically consist of loans and other credit exposures, while the majority of liabilities consist of deposits payable on demand and other short-term liabilities. In addition, many banks are exposed to substantial credit risks associated with lines of credits.
