How do you compare the balance sheet of a basic finance company with an investment banks balance sheet?

How fixed are the sides of the balance sheet of an investment bank to a finance company's balance sheet? Why are they different?

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The balance sheet of an investment bank is not that fixed as the bulk of the assets of that an investment bank holds are tradeable assets, for example, bonds, stocks and bank loans. These securities typically variety one quarter to another as the price of these securities moves.

The liabilities side of the investment bank is less sensitive to changes in market prices as the borrowings and debt of the investment bank are typically not marked-to-market (that is, borrowings are not stated at the market price). Instead, the adjustment is typically made in the equity account.

Finance companies has less volatile balance sheets as their assets (in this case loans made to customers) are not regularly traded (unlike the bonds an investment bank has on its balance sheet). The absence of market prices for the loans of a finance company and the fact that the loans of a finance company are held to maturity mean their assets (loans) are not regularly priced.

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