Define "assets" in the context of a bank's balance sheet.

In the context of a bank's balance sheet, assets are defined as resources owned by the bank that are expected to provide economic benefits. These resources can include cash, loans, investments, property, and equipment. They represent the value that the bank holds and can utilize to generate revenue and support its operations.

The fundamental characteristic of assets is that they enhance the bank's ability to generate future cash flows or provide economic benefits, which is crucial for its sustainability and growth. For instance, the loans the bank extends to customers are assets because they generate interest income over time. Similarly, investments in securities or property can yield dividends or appreciation in value, contributing to the bank's financial health.

This definition clearly distinguishes assets from liabilities, which are obligations the bank owes to others, or equity, which represents the ownership interest in the bank. Understanding this distinction is vital for analyzing a bank's financial position, as assets serve as the foundation upon which the bank's ability to operate and grow is built.