The most important category of assets on a bank's balance sheet is

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Loans are the most important category of assets on a bank's balance sheet as they generate interest income and are a major source of revenue for banks. Loans are also a reflection of the bank's lending activities and its ability to manage credit risk. Discount loans, securities, and cash items in the process of collection are also important categories, but loans are typically the largest and most significant.

The Most Important Category of Assets on a Bank's Balance