Banking 2: A bank’s income statement

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Introduction to the income statement of a bank (and to income statements in general).

25 Comments For This Post

  1. biagiolembo Says:

    sorry,
    what happens to the cash when it is used to pay back loans?? does the bank keep that cash for itself??

  2. jceja24 Says:

    Start a business? work for someone who got a loan? … I people didn’t need banks, there wouldn’t be any

  3. njneopatriot Says:

    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

  4. 00dfm00 Says:

    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.

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  6. riccati2012 Says:

    pretty good for beginnners

  7. sniped101 Says:

    lol, my teacher worked at coca-cola factory so my teacher knows what he is talking about… im just here for the fun 😛

  8. sniped101 Says:

    so… how does this help the little guy out?

  9. blahdelablah Says:

    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.

  10. markg2000in Says:

    Thank you so much. All your videos are very helpful. I know I might be demanding too much but can you post some basic videos on electronics and computers…

  11. Giovanni2666 Says:

    I wish my Economics teacher could teach like you. Great video, thanks for posting.

  12. ScholarMusic Says:

    WOW! You should teach teachers how to teach…

  13. damos92 Says:

    thanks for this man.

  14. pjblabla Says:

    everybody – please also watch the Crash Course by Chris Martenson – simply a brilliant compilation

  15. Donnie2020 Says:

    Pretty basic but worth watching ; )

  16. Donnie2020 Says:

    you fool!

    hes trying to help you out and teach you something and all you two can do is whinge and call him a “baby”?

    miserable prick!

  17. mms4uk Says:

    “the graphics are shit?” what is wrong with you
    this is a perfect explanation of how you are being stolen from
    WAKE UP FOR ALL OF OUR SAKES
    if you are too stupid to understand something simple then please watch tv you deserve it

    great vid thanks !

  18. ananiasacts Says:

    I agree. It seems lame to use a computer to draw text by hand. Why not just type?

  19. exd11183 Says:

    geez cant understand the drawing..its like its been written by a baby

  20. efh0888 Says:

    Revenue is income, NET income is revenue (income stream) – expenses

  21. sigur90 Says:

    There videos are amazing. My econ teacher is terrible and I’ve been watching a lot of your videos to make up for his terrible lectures. You’re a much better prof 😉

  22. rfry Says:

    I love the rawness of the drawings… Its more about what your trying to explain then it is about the pretty pictures.

  23. brco2003 Says:

    Great vid., once again! Perhaps “Interest Revenue” would be a better term than “Interest Income”.

  24. VictimOfBoredom Says:

    Thanks so much for making these finance and banking videos. I’m an accounting minor so these are very helpful. 🙂

  25. gonjamon99 Says:

    s/steel/steal/

    Doh!

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