Final answer:
Banks classify assets taking into account the complex nature of loans and the risks involved, which can be influenced by international banking and various financial arrangements. This classification may differ across banks and is especially pertinent to bonds, which are another form of bank assets with different risk profiles.
Step-by-step explanation:
Not every business classifies assets in the same way because the valuation of certain assets, especially in the banking sector, can be complex and dependent on various factors. Bank supervision brings about both practical and political challenges in terms of asset measurement. For instance, a bank's assets primarily include its loans, but the value of these loans is contingent on the perceived risk of repayment failure from customers.
Assessing the value of bank assets becomes even more complicated when international loans or intricate financial dealings are involved. Additionally, banks invest in bonds, including those issued by the U.S. government, which are considered low-risk and add to the bank's assets through the expected return of future payments. These variations in risk and complexity lead to differences in how assets are classified and valued.