About the Video
We always trust banks with our money, but what do they actually do with it?
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⬇️ Timestamps:
0:00 → Introduction
0:20 → How do Banks Profit?
1:27 → Key to Measure a Bank’s Profitability
2:29 → Bank’s Non-Performing Loan (NPL)
5:05 → Moomoo Malaysia
6:02 → More Ways that Banks Earn Money
8:58 → Statutory Reserve Requirement (SRR)
9:48 → How Your Money is Insured
10:18 → Conclusion
Have you ever wondered how banks make money using your deposits? Today, we’ll dive deep into the banking systems and unravel the secrets of their profit-making strategies. Banks don’t just let your money sit idle; they lend it out as loans, credits, and mortgages at higher interest rates, creating a significant Net Interest Margin (NIM). I’ll teach you how this key metric reflects a bank’s profitability and why it’s crucial to their business model. We’ll also explore the impact of events like the 2020 loan moratorium in Malaysia, Silicon Valley Bank, and Lehman Brothers.
Ever heard of Non-Performing Loans (NPLs)? I’ll explain what happens when borrowers default and how this impacts the bank’s finances. We’ll discuss the stringent credit risk assessments involving companies like CTOS and Experian that help banks minimize these risks. To keep our money safe, banks adhere to regulations like the Statutory Reserves Requirement (SRR) and insurance by government bodies like PIDM in Malaysia, ensuring a safety net for your deposits. By the end of this video, you’ll have a comprehensive understanding of how banks operate and profit, making you a more informed and empowered financial enthusiast.
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Disclaimer: All views expressed in this video are the independent opinions of Ziet, which are not necessarily shared by Moomoo Securities Malaysia Sdn. Bhd. (“Moomoo MY”). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and Ziet may receive certain commissions. Please contact Moomoo MY for more information.
