Banking 2: A bank's income statement
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- čas přidán 6. 10. 2008
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Introduction to the income statement of a bank (and to income statements in general).
More free lessons at: www.khanacademy.org/video?v=h3...
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.
That is very explicit Sir. To those who are criticizing, please take time and watch the video very well before commenting. thanks Sir
understand every single points you are conveying. it is amazing
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 :)
explained in a very easy to understand way
that was a beautiful approach I never thought of, about what inc statement represents.. thanks man!!!
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.
Thanks so much for making these finance and banking videos. I'm an accounting minor so these are very helpful. :)
Very well explained, helpful videos - and all free. Excellent, 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...
Very well explained. Great work. keep it up.
best video I've seen in my life
THANK YOU!!! you could explain astrophysics to first-year students :)
simple and cool and helped
keep doing it🙌🏻
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.
very helpful dude. I love you and these videos !
I liked the way you explain the balance sheet.
I was just thinking the same thing. It's amazing!
That's brilliant, many thanks
quite easy to understand for me the outsider~~
@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.
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?
wow simply excellent
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.
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 👍
Is minority interest with interest incom or non interest incom
ur awesome man
Excellent
sorry,
what happens to the cash when it is used to pay back loans?? does the bank keep that cash for itself??
OMG THIS IS AWESOME! BE MA TEACHER PWEASE!
best teacher
That epic phone cameo...
why dont you upload more videos?????? we need it badly
Thanks
Sal, If everyone had you as a teacher, there wouldn't be a recession.
"I have to buy my security guards machine guns" LOL Great Video!
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?
I agree. It seems lame to use a computer to draw text by hand. Why not just type?
everybody - please also watch the Crash Course by Chris Martenson - simply a brilliant compilation
@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
eduational video though but lot of unnecessary things in between please be straight to the point
oh there is? please show me your videos where you can explain it better
WOW! You should teach teachers how to teach...
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.
"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
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
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.
@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.
what is the time frame of each statement?
72 years if you do the math
teeth cleaning??
so... how does this help the little guy out?
why didn't you pick up the phone? it's me. just wanted to say thank you. :D
Well, it's for me.
God I should start a bank if one can make soo much money
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.
Isn’t this a bit misleading, banks create money when writing new loans, and most recognise income on origination
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 ;)
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.
PICK UP THE PHONE!
what is the $1 million real estate for? where does it come from?
+yermomrhot
lol, my teacher worked at coca-cola factory so my teacher knows what he is talking about... im just here for the fun :P
hi
7
7 people work at JP Morgan
teeth cleaning? lol. nice work.
Yup, machine guns.
MACHINE GUNS
banks and machine guns
geez cant understand the drawing..its like its been written by a baby
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
J
what about rocket launchers