What are the cash assets of commercial banks?

1. Cash on hand: Cash on hand refers to bank notes and coins kept in the bank vault to meet daily cash receipts and payments. Cash on hand of China Commercial Bank includes commercial cash on hand and reserve for savings business.

2. Deposited in the central bank: The funds deposited by commercial banks in the central bank can be divided into two parts: general deposits and statutory deposit reserves.

3. Interbank deposits: Interbank deposits refer to the deposits deposited by commercial banks with correspondent banks and affiliated banks. The purpose of depositing other banks' deposits is to facilitate banks to carry out agency business and inter-bank payment and settlement. As deposits with peers are demand deposits and can be used at any time, they can be regarded as cash assets of banks.

4. Cash in transit: funds in transit, also known as uncollected funds, refer to bills collected from foreign payment units or individuals of our bank through the other bank. In-transit funds are occupied before collection, and because they are usually in transit for a short time, they become interbank deposits after collection, so they are regarded as cash assets.

The more cash on hand, the stronger the liquidity and the worse the profitability. In order to ensure more profits under the necessary liquidity conditions, it is necessary to reduce the cash on hand to a minimum.

Therefore, banks must accurately measure the demand for cash on hand, adjust the stock in time, and strengthen various management measures to ensure the safety of cash on hand.

Commercial banks must unconditionally obey the statutory deposit reserve requirements of the central bank. Therefore, the management of statutory deposit reserve is mainly to accurately calculate its demand and hand over the payable reserve in time.

Baidu Encyclopedia-Bank Cash Assets