This video aims to provide a simple overview of a bank balance sheet, enabling the viewer to identify the principal items on it and what they mean. This video looks to demystify bank balance sheets by trying to decompose even the HSBC balance sheet -into consumable and understandable chunks which just happen to have a lot of zeros that come with it- which is arguably one of the largest and most complicated banks in the world.
Key learning objectives:
Analyse the principal asset items (footings) that typically feature on a bank’s balance sheet
Analyse the principal liability items (footings) that typically feature on a bank’s balance sheet
Analyse the makeup of Equity, sometimes called shareholders’ funds, on a bank’s balance sheet
Understand why these items exist on the balance sheet and what this tells you about the bank’s business model and hence risks