Are deposits not cash? They are assets to banks. They are also liabilities, as the money is owed to depositors, pursuant to the deposit agreement (most deposits are available by the next business day, but CDs and other longer-term deposits may have penalties/limits on early withdrawal).
yes, deposits are cash, as is when a bank issues sub debt, senior debt, or the like, funds from those "liabilities" are also cash, but so what, they are still not assets. Assets are what the bank invests in with the cash it derives from its liabilities and equity. If the bank makes no investments, the cash from those liabilities sits on its balance sheet as ...ta da...cash. The liabilities, however still have to be paid back, that's why they are....ta da...called liabilities. Finance 101...Inlet was absent that day in school, as were you. Read the balance sheet, Professor.