Let us consider the balance sheet introduced in Stage 1.
|e-Bank’s balance sheet (31 December 2006) $ million|
|Assets||Liabilities and shareholder’s equity|
|Reserves with central bank||40||Demand deposits||500|
|Consumer loans||300||Term deposits||300|
|Interbank loans||300||Interbank deposits||200|
Deposits and loans are collected by various branches located in several towns. Let us consider the branch located in central Paris. Here is its balance sheet.
|Central Paris branch’s balance sheet|
|Assets ($ million)||Liabilities ($ million)|
|Consumer loans||60||Term deposits||70|