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A comment on The size of the shadow banking system estimated according to power law. Parent comment

Re:The size of the shadow banking system estimated according... by arethuza on Wednesday October 02, 2013 @09:21AM (#6482190)
Isn't it round the other way for banks - their assets are things like loans (which are liabilities to the borrowers)?

If you deposit £50 pounds in the bank the cash becomes an asset of the bank and they create a matching liability to you because you probably want your money back at some point in the future....

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Re:The size of the shadow banking system estimated according... by onebaddude on Wednesday October 02, 2013 @09:49AM (#6482338)
>If you deposit £50 pounds in the bank the cash becomes an asset of the bank

Deposits are liabilities to a bank.

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Re:The size of the shadow banking system estimated according... by arethuza on Wednesday October 02, 2013 @09:59AM (#6482387)
Yes, but the cash you deposited becomes a balancing asset.... surely (I am not an accountant).
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Re:The size of the shadow banking system estimated according... by VLM on Wednesday October 02, 2013 @10:24AM (#6482539)
I am not in banking finance but I think the double entry accounting would be if you deposit a $20 bill that physical $20 bill shows up on the "physical stack o cash" as an asset and the other entry (double entry, get it?) shows up as a liability in accounts payable because they owe you $20.

I was in IT at a stock trading firm a long time ago and the limited free training they provided for accounting was probably the most interesting non-job related on the job training I ever attended.

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