A financial asset is an economic resource consisting of money held, an ownership interest in another entity or enforceable rights arising from a contract. Such rights may require the counterparty to transfer cash or another financial asset, or permit the holder to swap financial instruments on terms that may be advantageous. Bank deposits, loans, debt securities, trade receivables and shares are common examples. The position is classified from the holder’s perspective; the counterparty records the corresponding obligation as a financial liability, unless the arrangement represents an equity interest recognised within equity.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.