Banking Explained – Money and Credit


Comments • 5 037

  • Kurzgesagt – In a Nutshell

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    • Sam Torruellas
      Sam Torruellas  2 weeks back

      @Maxwell S i loved how cheesily they made the public bailout of the banks seem, despite NO ONE voting for that. Also how nicely worded the "shocks" are.

    • Maxwell S
      Maxwell S  3 months back

      You didn't explain the role of the reserve bank and how this affects money markets. House prices are going up and people are borrowing much more than banks can get from deposits. You did not explain where the banks get most of their money from, the interest they pay and their margin of profit when they lend money. Why can banks get money from the money markets but not ordinary people etc.

    • pablo smith
      pablo smith  6 months back

      *Do A Video On The Rise Of Cryptocurrency.*

    • Nourii
      Nourii  6 months back

      theres a bug while using INDONESIAN CAPTION in this video

  • Menos The Name
    Menos The Name  12 hours back

    The banking industry is a bit like taxes. You put money in and others get use out of that money.

    • kai liang
      kai liang  17 hours back

      This video is Awesome!

      • Ghastly_Grinner
        Ghastly_Grinner  18 hours back

        2:36 I like how this guy fails to point out that it was the Government forcing banks to lend to low income folks that caused the 2008 financial crisis

        • ouo svavv
          ouo svavv  1 days back

          interests is agaisnt the bible

          • Cleric775
            Cleric775  2 days back

            Don't bail them out.
            Don't buy the "bad assets".
            That is a bad idea.

            • Cleric775
              Cleric775  2 days back

              I have to correct you: they provide debts, not resources.
              Debt is not a resource, but a deficit.

              • Wojtek The Bear
                Wojtek The Bear  1 days back

                Debt isn't a deficit. You're mixing up the two terms. Also banks don't provide debt. That doesn't even make sense. Nowhere buys debt. Banks act as an intermediary between savers and borrowers, providing a short term injection of cash to said borrowers.

            • Mateo Royo
              Mateo Royo  2 days back

              When you invested millions of dollars in the stock market,then it collapses.

              _S T I N K S_

              However,you realized that you've already earned much more money than the one you lost because of the amount of successful investments you made in the past.

              *S T O N K S*

              • Cardăsda
                Cardăsda  3 days back

                Banking...biggest scam in history

                • Artem Glushchuk
                  Artem Glushchuk  4 days back

                  Not a single word about bitcoin, seriously ?=/

                  • Artem Glushchuk
                    Artem Glushchuk  15 hours back

                    Wojtek The Bear xD bitcoin is the closest concept to value. Nevermind

                  • Wojtek The Bear
                    Wojtek The Bear  1 days back

                    Bitcoin isn't terribly important as it's 99% a speculative currency.

                • Guilherme Prado
                  Guilherme Prado  4 days back

                  Bankers must die

                  • sexy korean girl
                    sexy korean girl  6 days back

                    we are all slaves

                    • zappos49
                      zappos49  1 weeks back

                      Banks dont lend money that people deposit, Banks lend money created out of thin air

                      • Wojtek The Bear
                        Wojtek The Bear  6 days back

                        @zappos49 Mike Maloney isn't a credible source. He's a precious metal investor with no academic background relating to banking, finance, or economics, and whose goal is to only encourage people to buy precious metal (particularly through him).

                        Are you really trying to suggest that he's an unbiased (or even credible) source when he's literally trying to sell you his alternative to money?

                      • zappos49
                        zappos49  6 days back

                        @Wojtek The Bear i would start with Mike Maloney videos

                      • zappos49
                        zappos49  6 days back

                        @Wojtek The Bear you would think so but you are wrong, so some research

                      • Wojtek The Bear
                        Wojtek The Bear  6 days back

                        No, that's straight up illegal. Banks lend out deposit, hence the phrase fractional reserve banking. A fraction of all deposits are kept as reserves; the rest loaned out.

                    • Søren Steinmetz
                      Søren Steinmetz  1 weeks back

                      Lot of banks demand a fee to let you have your money in them.
                      So essential, you have to pay them for borrowing your money.

                      Unless you have multi millions placed in them, then you might get a small interest instead.

                      • Søren Steinmetz
                        Søren Steinmetz  6 days back

                        I get an interest of 0.00% on my account, until it grows above 5 mil Danish Kroner (just below $1 mil)
                        And I have to pay around $250 /year just to have an account with them (and they are one of the cheapest to use)

                        Since it is mandatory to have a bank account, there is not that much to do to avoid it.

                      • Wojtek The Bear
                        Wojtek The Bear  6 days back

                        Everyone gets a small interest. The reason they might sometimes charge a small interest is because you benefit from storing your money in a bank. Otherwise you wouldn't be doing it.

                    • Christophe Breland
                      Christophe Breland  1 weeks back

                      I wonder if it's because of the digitization of money that allows for ever larger crisis of does it allow it to be fixed easier

                      • Wojtek The Bear
                        Wojtek The Bear  6 days back

                        Ever larger crises? Our economic downturns have been fairly mild. Even the Great Recession was much more milder than it could've been.

                    • Joy Zhou
                      Joy Zhou  1 weeks back

                      Investment banks is probably not a good example of a better alternative of banks...

                      • Amun-Ra
                        Amun-Ra  1 weeks back

                        Even though we all use them if you look into the origin of banks the way it got started was a scam

                        • Navaid Syed
                          Navaid Syed  1 weeks back

                          Just the fact that "banking lobby blocked further legislation" negates the notion that legislation can do anything good. Under the influence of banking lobbies, banking legislation is only working for big banks and limiting the competition.

                          • Navaid Syed
                            Navaid Syed  4 days back

                            @Wojtek The Bear And big banks have got about six trillion in taxpayers funded handouts and bailouts since 2008 for what?

                          • Navaid Syed
                            Navaid Syed  4 days back

                            @Wojtek The Bear So, shadow bankers caused crash. not the big banks?

                          • Wojtek The Bear
                            Wojtek The Bear  5 days back

                            @Navaid Syed No, I'm saying there were no regulations in place to begin with. Shadowbanking wasn't covered by banking regulations since they were never defined as banks. Dodd-Frank gave them some.

                          • Navaid Syed
                            Navaid Syed  5 days back

                            @Wojtek The Bear So, you are saying that we needed more regulations because regulations failed?

                        • KanIHabe DaPusiBaws
                          KanIHabe DaPusiBaws  1 weeks back

                          Economics are fuckin harder to understand and comprehend than Quantum Physics seriously

                          • Wojtek The Bear
                            Wojtek The Bear  6 days back

                            A good understanding of statistics and a rudimentary understanding of calculus (particularly derivatives) helps.

                        • Andrei Naramzoiu
                          Andrei Naramzoiu  1 weeks back

                          Yay i'm italian

                          • Mofo Performance
                            Mofo Performance  1 weeks back

                            this isn't even remotely accurate. Money is debt that is created from thin air now, not assets that are held and lent

                            • Wojtek The Bear
                              Wojtek The Bear  6 days back

                              Someone never heard that its possible to be a liability to one person and an asset to another. USD is a liability of the Federal Reserve and an asset to anyone who holds it.

                          • Ju Ki
                            Ju Ki  2 weeks back

                            Banks... risks management system.. please... who are reporting record profits...

                            • Wojtek The Bear
                              Wojtek The Bear  6 days back

                              You do realize what a risk management system is, right? No one ever said they couldn't be profitable. In fact, the whole point of them is to be profitable.

                          • chris Lambert
                            chris Lambert  2 weeks back

                            You forgot to mention that the Banks are getting their Cash from the various National Governments "quantitative easing" practices

                            • Wojtek The Bear
                              Wojtek The Bear  6 days back

                              You realize 99% of the companies that used quantitative easing have since stopped it since the recession ended and have been removing the currency from circulation, right?

                          • notbasilcount
                            notbasilcount  2 weeks back


                            • PJ
                              PJ  2 weeks back

                              What a load of old tosh. This doesn't explain banking. Banks create digital money in their account when you sign a security (a'loan' agreement). This is then transferred to your account. They now have an asset. (Promissory Note etc) You pay them back with interest and they destroy the'loan' figure but keep the interest. This is why the 'money ' in circulation has increased over time. So many people still can't accept that banks create ' money' out of thin air on screen (97% digital, 3% actual currency).

                              • Wojtek The Bear
                                Wojtek The Bear  6 days back

                                That's because what you said is bullshit. Banks straight up don't create money out of thin air. That's illegal; plain and simple. Only the Federal Reserve (or other central banks (Read: not commercial banks)) can print money. When a bank loans out money to an individual, it MUST have the money in reserve. Else it will go below the required reserve requirements of the Fed (or other central bank) and face governmental action. They can get this money from their own reserves, take out a loan from another bank, or get a loan from the Federal Reserve. Either way, when the transaction takes place, they MUST have the money.

                                So why has money in circulation increased? The process of fractional reserve banking. No individual bank 'creates' money. The process does when banks lend out a portion of their deposits. Example:

                                John deposits $100 in his bank. The bank takes 10% of it and holds it in reserving, lending out the remaining $90 to Bill. Bill then takes the $90 and deposits it in his bank, which does the same as before, keeping 10% of it ($9) and holding it in reserve, lending out the extra $81.

                                We not have $90+81 loaned out, and a further $10+$9 in reserve ($190 total) on an initial deposit of only $100. Money has been created, but no bank created it. This process is also overseen by the Federal Reserve (and other central banks) so it's no scam.

                            • CorporateRaider97
                              CorporateRaider97  2 weeks back

                              For reference, the technology industry is going to reach 3 trillion this year

                              • Marco Morales
                                Marco Morales  2 weeks back

                                1:35 Sage Training Anyone ?

                                • Parke Without Reverse
                                  Parke Without Reverse  2 weeks back

                                  This is your WORST video... you made no mention of the fiat fractional reserve system... aka... creating money out of nothing. ALL BANKS ARE A SCAM, THE WHOLE SYSTEM IS!

                                  • Wojtek The Bear
                                    Wojtek The Bear  2 weeks back

                                    That's not what fractional reserve banking is. Hint: it's in its name!

                                    Fractional reserve banking is simply the idea of only keep a fraction of a deposit in the reserves of the bank, choosing to lend out the rest.

                                • Mikeygd D
                                  Mikeygd D  2 weeks back

                                  This guy has no idea how banking Works has no idea the Federal Reserve Bank generates debt and it gets paid back by the tax payers we are the ones that bailed them out

                                  • Mikeygd D
                                    Mikeygd D  2 weeks back

                                    @Wojtek The Bear there is a Federal Reserve Bank, it was created and passed into Congress December 23rd 1913 do your research. With that bill does is take away the power from Congress and it gave it to the private bankers. It's a legal partnership between the government and the banking system the it's a legal partnership between the government and the bank. The government needs to spend so they borrow from the Federal Reserve Bankl. The Federal Reserve Bank lends the money to the government at a set interest rate the government spends and pays the Federal Reserve Bank back their money with interest. That interest is taxed from the citizens me and you. Do you research my friend

                                  • Wojtek The Bear
                                    Wojtek The Bear  2 weeks back

                                    First: There is no Federal Reserve Bank. The Federal Reserve is a system of banks. You could at least get the basics right.

                                    Second: The Fed doesn't generate debt. If anything, they tend to buy American government debt.

                                    Third: They've never needed to be bailed out. The simple idea of it is ludicrous considering they aren't even a private, or for-profit, institution.

                                • NI KO
                                  NI KO  2 weeks back

                                  August 2019. Negative interest rate. Bye, see you after the next banks collapse ;)

                                  • :Amadeus :Țurcanu-Moisl.

                                    [ the international banking system is an enigma...
                                    Are you sure, that it is an enigma, or is it rather a ligma? ]

                                    • Cypher
                                      Cypher  2 weeks back

                                      Brace yourselves, economically uninformed "Banking Is A Fraud" comments are coming!

                                      • David Mende
                                        David Mende  2 weeks back

                                        LOL never seen the ΔSS Part of the Banking formula before XD ( 19 sec in )

                                        • I Like YouTube.
                                          I Like YouTube.  3 weeks back

                                          Back in the past trading was great but one problem was Too many currencies to deal with then why did u nit just get rid of currencies and traded manually I think when currencies when introduced banking begin and we all know how this system is fraud.

                                          • Cole Gagliano
                                            Cole Gagliano  3 weeks back

                                            Except Lehman Brothers and others were giving away mortgages to everyone during ‘08 because the government was subsidizing them, thereby tipping the banks risk-reward calculations.

                                            • Wojtek The Bear
                                              Wojtek The Bear  2 weeks back

                                              @Cole Gagliano Involved? Sure. They were involved in the process that led to the Financial Crisis. They were not the ones who lent money to borrowers though. They didn't lend a single cent.

                                              How the process worked was that a commercial bank, say, Bank of America, would go to a potential home buyer and offer them a mortgage on said home. They'd then take a bunch of these mortgages, combine them into one large bag of them, and then divide up sections of the bag and turn them into securities. So if the Johnson's and the Smith's both take out a mortgage, my security would own part of the Johnson's mortgage, and part of the Smith's. This way my security can still remain profitable if a few mortgages end up defaulting.

                                              These securities were then sold to investment banks like Lehmann Brothers. Bank of America would then take the funds from selling the securities and offer up even more mortgages.

                                              So yes, Lehmann Brothers was involved in the process, but they never lent out any money for a mortgage.

                                            • Cole Gagliano
                                              Cole Gagliano  2 weeks back

                                              @Wojtek The Bear The video directly mentions lehman brothers as being among the financial institutions involved in overlending.

                                            • Wojtek The Bear
                                              Wojtek The Bear  2 weeks back

                                              @Cole Gagliano First, no your weren't. This video doesn't mention government subsidies or risk calculations. Second, this video isn't even right about many aspects of banking.

                                            • Cole Gagliano
                                              Cole Gagliano  2 weeks back

                                              @Wojtek The Bear Just quoting the video son.

                                            • Wojtek The Bear
                                              Wojtek The Bear  2 weeks back

                                              Dude, do you even know what you're talking about? Lehmann Brothers never gave mortgages out to people. They were an investment bank, not a commercial bank (what your or I think of as a bank). Commercial banks gave out the mortgages and then sold them to other entities like Lehmann Brothers. You could at least get the basic elements right.....

                                          • Btissam elevating
                                            Btissam elevating  3 weeks back

                                            The Italian word for bench is "panchina "

                                            • PartyNiga
                                              PartyNiga  3 weeks back

                                              You forgot to mention the Jews that schemed all this.

                                              • Wojtek The Bear
                                                Wojtek The Bear  3 weeks back

                                                You realize banking has existed since before Judaism, right?

                                            • smellyeddiekelly
                                              smellyeddiekelly  3 weeks back

                                              This is 100% wrong.... You fucking idiots..

                                              • Daniel Fazlan
                                                Daniel Fazlan  3 weeks back

                                                They didn't even mention the part about central banks and the fed being the most powerful banks on the planet so we now know who's (((really)) controlling this channel

                                                • Wojtek The Bear
                                                  Wojtek The Bear  3 weeks back

                                                  Except central banks aren't even banks, at least not in the way people commonly think of them. They aren't commercial institution; they are regulatory.

                                              • Christones Michel
                                                Christones Michel  3 weeks back

                                                So... change my bank to a credit union. Got it!

                                                • Faceofthesun
                                                  Faceofthesun  3 weeks back

                                                  High Voltage Political Power! It might even be possible to apply electrical engineering formulas to politics. There is a potential difference, right- wing versus left-wing. There is resistance to various Bills. Capacitance pent-up animosities between parties. Inductance influencing others and transformers converting others to their political beliefs. And there is the Federal Reserve the battery (accumulator)storing the electric charge (money). The generator is the workforce. And even electromagnetic radiation is the Media. Flip Flopping and many other ideas could also be included such as digital logic etc. Add some statistical information figures and facts, put it all into a supercomputer and see what it comes up with. Possibly more confusion, but who knows? Politics seems to be an art as well as science, and computers aren't too good at the art of doing things yet. But maybe AI (artificial intelligence) computers will be. If they can come up with ideas such as this one.

                                                  • mikoto rifky
                                                    mikoto rifky  3 weeks back

                                                    Your indonesia subtitle is bad

                                                    • vfwh
                                                      vfwh  3 weeks back

                                                      Sorry, but this is the least helpful explanation of banking I've ever seen.

                                                      If you don't start the question of banking from where 'the money' is coming from, then you are not explaining banking.

                                                      Moreover, I just saw your video about UBI where you say that 'money is not created by magic or on printers', therefore I did expect this one to tackle where money was coming from.

                                                      • SpiritualPunk
                                                        SpiritualPunk  3 weeks back

                                                        are we going to talk about how peoples lives are destroyed by the damn debt?

                                                        • Wojtek The Bear
                                                          Wojtek The Bear  3 weeks back

                                                          Are we going to talk about how there is nothing inherently wrong with banking?

                                                      • Turtle Burger
                                                        Turtle Burger  3 weeks back

                                                        1:05 portal

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                                                          jayceon Raeshetia  4 weeks back

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                                                          • Eyad Ghatfan
                                                            Eyad Ghatfan  4 weeks back

                                                            even Kursgesagt couldn't make this simple 😐

                                                            • Jupp Soetebier
                                                              Jupp Soetebier  4 weeks back

                                                              What new regulations? Nothing is in force to avert EXACTLY the same crisis 2008 over and over again. Two of the most evil people on the planet: Lloyd Blankfein of Goldman Sachs and Jamie Dimon of Chase are STILL in charge and basically give Congress the finger every time they testify.

                                                              • Wojtek The Bear
                                                                Wojtek The Bear  3 weeks back

                                                                First, blaming the entire crisis on two CEO's is stupid and ignorant. You're completely ignoring the fact that they too lost money during the Financial Crisis. Second, you realize Dodd-Frank was passed through Congress specifically because of the Financial Crisis, right? It targeted too big to fail businesses that weren't commercial banks (mostly shadowbanking) one of the major causes of the crisis in the first place.