Using his example of a growing village bank, Sal (the narrator) explains the ins and outs of the banking business, mainly from the banker's perspective. This point of view can be helpful for people who see the bank as an institution that...

Demonstrating not only the working definition but also the mathematical model of financial leverage, Sal shows viewers how leverage can keep a bank safe—or multiply its losses. Particularly helpful for a class session on bank regulation...

Can a bank issue endless loans and checking accounts without regard to the amount of money within its walls? Sal addresses this question throughout the lecture, where he introduces the concept of bank regulations - specifically reserve...

To start this video Sal lists the liability and assets of an imaginary bank and then discusses how banks acted with different levels of caution, which then led to some loans backed up but others defaulted on.