Total Liabilities
Everything a company owes to creditors and depositors.
Definition
Total liabilities encompass all financial obligations including deposits, borrowings, bonds issued, accounts payable, and deferred tax liabilities. For banks, deposits typically represent the largest single liability category.
Why It Matters
The composition of liabilities matters as much as the total. Banks funded primarily by stable core deposits have lower funding risk than those relying on wholesale funding or brokered deposits.