A major liability of a commercial bank arises from
Answer Details
A major liability of a commercial bank arises from customers' deposits. When customers deposit money in a commercial bank, the bank assumes a liability to repay the customer the deposited amount on demand or on the agreed terms. This is a major liability for the bank as it is obligated to keep the customers' money safe and repayable at any time, while also making use of the funds for lending and other business activities. Therefore, it is important for banks to have appropriate risk management measures in place to ensure that they can meet their obligations to depositors at all times.