Im taking accounting for the first time and need to write a term paper. Was searching for good explanation on Tier 1 capital and looked all round until I got here. I can say this was simple and better than the rest. Thanks
hey paddy u said that the tier 3 consists of the deposit holders of banker..but deposits are considered as the liabilty and not the capital of the bank right?
Paddy, I have read many articles on Basel lll and in fact i am writing a paper on it, the way you have explained it is the most simplest way and so easy for everyone to understand. I Really appreciate your efforts.
He mixes up both assets and liabilities. Or lumps them together, perhaps. The deposits are liabilities, but the loans (assets) that the bank makes are mostly supported by the deposits. Tier 2 he said was investments and preferred stock - same thing there, both assets and liabilities.
A rather misplaced assessment. Is Basel about how to keep banks healthy....isn't that up to the board of directors and shareholders. Basel committee is composed of the central banks of G20 countries not the the CFO's of the largest banks of their respective countries and it is trying to make banks pay for their risk taking. The more risky assets or sectors of the economy they have exposure to the more capital they have to assign to loan loss provisions. Thus capital raising is to soak up loan loss, not really attractive value prop for investors that primarily see their investments go towards expanding a company or lowering op-ex or gaining market share etc.
Great vid.. I always enjoy all your vids. Can I please have a video on Types of financial risk - defined academically? Some classify risks into 3,7 or 9 types. Some treat country risk as a part of operational risk, while some treat it separately. So it'd help to know the "correct" academic way of classification of risks.
The cruel reality is that the euphoric promise of John & Julie’s nuptials have probably long since dissolved into a messy divorce. Tier 1 can only work when these newlyweds completely mitigate counter party risk. Polonius understood fiscal faithfulness: “To thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man.”
2:50 - what are you talking about? share appreciation don't create more cash for the bank. It's the other way around - cash generation within the bank makes the shares more valuable. You're mixing up assets with liabilities!
Absolutely phenomenal explanation, and I work with these tiers of capital all day, yet couldn't put it better.
The whole hue and cry around this concept finished in just 4 min!! Will never forget... Thanks 👍👍
Im taking accounting for the first time and need to write a term paper. Was searching for good explanation on Tier 1 capital and looked all round until I got here. I can say this was simple and better than the rest. Thanks
This dude is AWESOME!
The wedding cake comparison is awesome!
dude, how good is this video??? Thank You!
You are gifted at teaching....thank you!
hey paddy u said that the tier 3 consists of the deposit holders of banker..but deposits are considered as the liabilty and not the capital of the bank right?
Paddy, I have read many articles on Basel lll and in fact i am writing a paper on it, the way you have explained it is the most simplest way and so easy for everyone to understand.
I Really appreciate your efforts.
vickyaaa123 - feel free to post your paper... I’d like to read it.
@@slaapjynog2630 he died three years ago pal. it's too bad.
Subscribed as soon as he began drawing the cake. I knew he would be amazing.
Wow, Really great explanations, very insightful and easy to understand! You should be a Professor!!
He mixes up both assets and liabilities. Or lumps them together, perhaps. The deposits are liabilities, but the loans (assets) that the bank makes are mostly supported by the deposits. Tier 2 he said was investments and preferred stock - same thing there, both assets and liabilities.
Finally I get to understand this! Thank you.
is teir 1 a companys cash too? would it be net tangible assets and cash?
I don't get it. Tier 3 is deposits (liability), Tier 2 is "other investments " (assets) and Tier 1 is equity???
It appears he shuffled between the 'Source' and 'Deployment' of tier-1/tier-2/tier-3 capital while explaining
too good. as always. made it so simple to understand.
Such as awesome explanation and the end was just too good 👌
I want to say thanks - with your explaination you make I can understand the whole system better.
greetings from germany
One video is better than all sorts of effort trying to Google out the importance of Tier 1 capital to a bank
i watch a few of your videos every night i love them all!
Will we get him back???!!! I read his book Man VS Markets and it is so good!!
A rather misplaced assessment. Is Basel about how to keep banks healthy....isn't that up to the board of directors and shareholders.
Basel committee is composed of the central banks of G20 countries not the the CFO's of the largest banks of their respective countries and it is trying to make banks pay for their risk taking. The more risky assets or sectors of the economy they have exposure to the more capital they have to assign to loan loss provisions. Thus capital raising is to soak up loan loss, not really attractive value prop for investors that primarily see their investments go towards expanding a company or lowering op-ex or gaining market share etc.
That's the best explanation I got ever
thank you
Great vid.. I always enjoy all your vids. Can I please have a video on Types of financial risk - defined academically? Some classify risks into 3,7 or 9 types. Some treat country risk as a part of operational risk, while some treat it separately. So it'd help to know the "correct" academic way of classification of risks.
This guy is brilliant!
excellent as always!
wonderful . I have undertsood well.
So well explained
and you are the ultra legend teacher
Amazing teacher!
What a smart explanation!! Thank you so much..you literally saved me ❤️
this is amazing , thank you
The cruel reality is that the euphoric promise of John & Julie’s nuptials have probably long since dissolved into a messy divorce. Tier 1 can only work when these newlyweds completely mitigate counter party risk. Polonius understood fiscal faithfulness: “To thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man.”
who picks up the pen he throws?
Thank u
very helpful, thanks!
The banks can definitely keep you from taking your money
Cheers mate!
2:50 - what are you talking about? share appreciation don't create more cash for the bank. It's the other way around - cash generation within the bank makes the shares more valuable. You're mixing up assets with liabilities!
superb!
Bravo!
....eerrrr...GOLD maybe as a tier 1 asset???....funny how he did not mention GOLD???
Awesome dude
hahah those stift he throws away xD. Nice explanation.
I know! Let's buy a camera tripod!
Ya sure all will be badly needing a drink
Ako jedna zemlja proda vlastiti banke 2 gim zemljama!?Sto onda!?
#BOLI
would not need a drink : )