Banking 2: A bank's income statement
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- Опубликовано: 20 авг 2024
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Introduction to the income statement of a bank (and to income statements in general).
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teacher, this is so hard when i learn in university even in my langue ̣(vietnamese), but u make it so much easy and enjoyable to study. tks very much Sal.
"I had to buy my security gaurds machines guns" LOL XD
I love the rawness of the drawings... Its more about what your trying to explain then it is about the pretty pictures.
A machine gun is a fully automatic, rifled autoloading firearm designed for sustained direct fire with rifle cartridges.
Other automatic firearms such as automatic shotguns and automatic rifles (including assault rifles and battle rifles) are typically designed more for firing short bursts rather than continuous firepower, and are not considered true machine guns.
As a class of military kinetic projectile weapon, machine guns are designed to be mainly used as infantry support weapons and generally used when attached to a bipod or tripod, a fixed mount, or a heavy weapons platform for stability against recoils.
Many machine guns also use belt feeding and open bolt operation, features not normally found on other infantry firearms.
Machine guns can be further categorized as light machine guns, medium machine guns, heavy machine guns, general purpose machine guns and squad automatic weapons.
Similar automatic firearms of 20 mm (0.79 in) caliber or more are classified as autocannons, rather than machine guns.
explained in a very easy to understand way
That is very explicit Sir. To those who are criticizing, please take time and watch the video very well before commenting. thanks Sir
Thanks so much for making these finance and banking videos. I'm an accounting minor so these are very helpful. :)
This is the best course I ever take!
And I never thought I would enjoy a banking class like this.
Your explanation made it simple and clear.
OMG! How I wish I could have a teacher like in my real life.
And I'm feeling lucky that I can take your course through Internet.
Thank you! I really love it! I wanna take all of your courses, just can't wait to see the next lecture :)
understand every single points you are conveying. it is amazing
They aren't really using their equity, but rather other people's money. Equity is a claim against assets; here that is initially the $1m building, then the $200k interest that came in for total $1.2m. Also, in the purest sense, the interest is payment for matching up people's savings with borrowers and assuming all risks, as still owe savers their money + promised interest.
that was a beautiful approach I never thought of, about what inc statement represents.. thanks man!!!
@krusaderkrusader3 The equity in this example is only $1 million of Shareholders' capital. This starting equity is then used to purchase the bank building for $1 million. You could not count the building again because that will be counting the same thing twice. Easy way to think about it is if I have $10,000 in cash that my dad gave me and use it to buy a car worth $10,000, I dont end up with $20,000. I ended up with $10,000 just in different form.
Very well explained, helpful videos - and all free. Excellent, thanks.
Great vid., once again! Perhaps "Interest Revenue" would be a better term than "Interest Income".
@whartanto2 Thanks for the response. This was actually the reason why I asked the question - I thought that besides the bank building the entrepreneur also has 1m in cash. So my predictions were kind of right I guess.
I liked the way you explain the balance sheet.
quite easy to understand for me the outsider~~
THANK YOU!!! you could explain astrophysics to first-year students :)
Very well explained. Great work. keep it up.
Thanks
simple and cool and helped
keep doing it🙌🏻
best video I've seen in my life
very helpful dude. I love you and these videos !
"and i had to buy my security guards machine guns."
well sounds legit how to run a bank 101 lol
just kidding man nice video even tho this is 2022 i get the idea thank you so much
Sal, If everyone had you as a teacher, there wouldn't be a recession.
That's brilliant, many thanks
I don't know if I'm being thick but shouldn't the interest you pay on the £10m be a part of liabilities too? I understand that it was calculated and taken into account as part of the net income number but just to clarify in terms of the terminology...
wow simply excellent
everybody - please also watch the Crash Course by Chris Martenson - simply a brilliant compilation
I was just thinking the same thing. It's amazing!
That epic phone cameo...
WOW! You should teach teachers how to teach...
Excellent
Should point out that the change in equity is only equal to the aftertax income if no dividends are drawn. Say you decide to buy a yacht with $100k of the income, then your delta equity would only be $100k.
ur awesome man
best teacher
@LudwigDeGieter He is right, he has taken the 9 million dollars which he uses are working capital to calculate the interest income ie 900k whereas he takes 10 million dollars which he has as deposits as interest expense ie 500k
OMG THIS IS AWESOME! BE MA TEACHER PWEASE!
eduational video though but lot of unnecessary things in between please be straight to the point
Why don't you treat the bank building as a starting equity also? (when you calculate the relative income at the end? What implications would there be if you'd include that building as a starting equity?
That was fun 👍
I agree. It seems lame to use a computer to draw text by hand. Why not just type?
why dont you upload more videos?????? we need it badly
@DulciJubilo
Hard commodities are going to hold their value, not FIAT currency. Invest in tools, guns, ammo, gold or silver etc. Think of what you would NEED if say the world as we know it ends and walmart isn't open anymore. That xbox or LCD TV is really worthless if you have no power.
"I have to buy my security guards machine guns" LOL Great Video!
This video is interesting because it helps to demonstrate how the rich get richer faster than the rest of us, as banks (for example) can make investments from their own equity without requiring a loan, i.e. no interest to deal with.
just a question, in the first vid he say that the Bank r.e. was payed with the 1m. My question is, the R-E counts for equity or was just a litle error?
sorry,
what happens to the cash when it is used to pay back loans?? does the bank keep that cash for itself??
God I should start a bank if one can make soo much money
How come there is only $10m in deposits when they have been paid $500k? Shouldn't that go on the end of year balance sheet?
Is minority interest with interest incom or non interest incom
oh there is? please show me your videos where you can explain it better
Isn’t this a bit misleading, banks create money when writing new loans, and most recognise income on origination
Hmmmm .... How is a borrower considered an asset? I believe it is an educated gamble to believe I will get paid back the money I loaned out. It appears to be a system based on faith in getting a return
lol, my teacher worked at coca-cola factory so my teacher knows what he is talking about... im just here for the fun :P
why didn't you pick up the phone? it's me. just wanted to say thank you. :D
teeth cleaning??
You cannot receive the interest if you haven't actually received the lent amount first.
In accounting, incomes and expenditures are not calculated when they're actually received, but when they're owed. So at the end of the year, you're owed 900k and you owe 500k, so your income for the year is 400k, even though you haven't actually received any money or paid any.
Well you have paid some thing which is the tax, upkeep, and saleries
So yes you have paid something ;)
what is the time frame of each statement?
72 years if you do the math
Well, it's for me.
Lol, machine guns. Where's the golden parachute? Oh I get it your bank didn't hand out any credit cards or checking accounts yet with all the added services.
hi
How come you have 900 k as interest income if the ppl that took loans haven't paid them off?
crazy-b because ten percent of 9 million is 900k ? He lent out 9 mil and gets 10% return.
so... how does this help the little guy out?
A very important point that most of the comments missed. 5% interest on $1M is $50,000, NOT $500,000
Its 5% of 10m not 1m
PICK UP THE PHONE!
7
7 people work at JP Morgan
what is the $1 million real estate for? where does it come from?
+yermomrhot
teeth cleaning? lol. nice work.
J
Yup, machine guns.
MACHINE GUNS
banks and machine guns
geez cant understand the drawing..its like its been written by a baby
what about rocket launchers