Final answer:
On a bank's balance sheet, liabilities include customer deposits, borrowed funds, and other liabilities such as accrued expenses. Customer deposits make up the largest portion of a bank's liabilities. Bank capital is the net worth, which is assets minus liabilities.
Step-by-step explanation:
In a bank's balance sheet, under liabilities, we would generally find several different types of obligations that the bank has. These include customer deposits (savings accounts, checking accounts, and time deposits), borrowed funds (such as loans from other financial institutions or from the central bank), and other liabilities (like accounts payable or accrued expenses). Customer deposits are the main liability for most banks, as the bank owes this money back to its depositors. Additionally, any long-term debt the bank has taken out will also appear as a liability. The net worth of the bank, which is also referred to as bank capital, is calculated by subtracting all liabilities from the bank's total assets.