Bankers go head to head over Tier 1 capital

Tier 1 capital is the money that’s at the core of every bank. But, like everything else in banking, it’s subject to definition, and bankers still can’t agree…
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30 Responses to “Bankers go head to head over Tier 1 capital” Subscribe

  1. RyzieG March 31, 2013 at 12:02 pm #

    very helpful, thanks!

  2. fsdaf fdsafd March 31, 2013 at 12:44 pm #

    i watch a few of your videos every night i love them all!

  3. TheSpecificChad March 31, 2013 at 1:10 pm #

    90% of reserves are lent out the other 10% is what is known as the “reserve requirements” that must be held at the fed. These are still lent to other member banks at the fed funds rate. The DISCOUNT RATE is the rate the banks borrow money directly from the fed at.

    This is like borrowing money from your brother(no questions, worse rate) or your parents (lotsa questions, interest free) ……In 2008 banks would not lend to each other even at the fed funds rate!

  4. TheSpecificChad March 31, 2013 at 2:08 pm #

    that is tier 3. they are just depositers money

  5. mo tajik March 31, 2013 at 2:47 pm #

    Cheers mate!

  6. BIueViolin March 31, 2013 at 3:17 pm #

    Brilliant explanation. Merci

  7. Carlo Dorresteijn March 31, 2013 at 3:42 pm #

    Thank you so very very much!

  8. w375928 March 31, 2013 at 3:46 pm #

    Am I right in assuming Tier 1 capital includes retained earnings, what about reserves held at the central bank? Reserves must be considered Tier 1.. right?

  9. malsaqa March 31, 2013 at 3:50 pm #

    you are amazing. I like your lectures

  10. pomoxyz March 31, 2013 at 4:04 pm #


  11. vickyaaa123 March 31, 2013 at 4:20 pm #

    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.

  12. vickyaaa123 March 31, 2013 at 4:52 pm #

    too good. as always. made it so simple to understand.

  13. TheLearningRevolutn March 31, 2013 at 5:10 pm #

    always great explanations! Thank you , Paddy!

  14. EmperorNO1 March 31, 2013 at 6:07 pm #

    I want to say thanks – with your explaination you make I can understand the whole system better.
    greetings from germany

  15. yrachmani March 31, 2013 at 6:36 pm #

    keep it up you are very talent person you can exsplnd complex things in very nice way you shold get a show let get a drink we all need it rghit now :)

  16. Thewally1000 March 31, 2013 at 7:06 pm #

    Great Video …I feel like cake now

  17. Scutter Martin March 31, 2013 at 7:24 pm #

    thank you brother. Your videos are always a pleasure to watch and they are always informative, so thank you for taking the time to share your knowledge with the rest of us.

  18. shysurfer March 31, 2013 at 7:45 pm #

    Great article on the GATA website which cover the Basil 1-3 tier assets. Also explains the pros and cons (and con artists) of the gold bull and bear moves in the coming months and years. This move also explains a lot because at the same time we have a change in international settlement requirements of banks, we have war with Israel and Palastine. Also mounting pressure from other nations too. Monumental shifts will come, money, power, wealth cycles and debt cycles are upon us, the likes we’v

  19. RadocracyTV March 31, 2013 at 8:31 pm #

    Its a very real possibilty (sadly), and I also noted the lack of primary sources. I put the PDF’s in the description box where there is a couple mentions of gold as eligible financial collateral…but that wouldnt be anything new I don’t believe. We’ll see how this story ends up. Worth following though!

  20. syngensmythe1 March 31, 2013 at 9:12 pm #

    I saw this as well but in no article that I read does the author cite his source. That’s probably why the story only seems to be on second rate financial websites and the more reputable news organizations haven’t touched it. There’s no mention of it on the bis website either. I think it’s a lot of hot air unfortunately.

  21. silvergoldhedge March 31, 2013 at 10:07 pm #

    end of the paperponzi system as we know it?

  22. RadocracyTV March 31, 2013 at 10:53 pm #

    I’m pretty bullish on copper longterm, but its a tricky market to ‘invest’ in. Last week I did a blazer report on JP Morgans plans for a new copper ETF. Apparently somebody else sees opportunity as well lol. Nickel I have to do more research on.

  23. mike ross March 31, 2013 at 11:46 pm #

    I tend to agree. I think metals are a bargain at today’s prices. What are your thoughts on nickel, and copper? Btw, that’s a sharp blazer. :)

  24. RadocracyTV April 1, 2013 at 12:37 am #

    I don’t think so. I think some kind of credit event in Europe could send metals down significantly, but only for a very brief time. Once that opportunity passes, they will move to a much stronger, higher position.

  25. mike ross April 1, 2013 at 1:32 am #

    Have we seen the low on gold and silver?

  26. artonink April 1, 2013 at 1:53 am #

    personally im looking for further moves up before i call a disconnect, if we have a repeat of what just happened then maybe its over, could be the beginning of the end of the paper game, might have to throw in the paper towel a buy some more metal

  27. BITARTEN April 1, 2013 at 2:11 am #

    Great points.
    I think GOLD will remain while money, USD, € and so on
    will collapse.
    Here in Spain the situation is very bad and I think it may collapse
    as they are not capable to get the money to rescue the banks and the local governments that are totally broke

  28. lowpross11 April 1, 2013 at 2:53 am #

    Great points !!
    Very exciting news about future (large scale) perception on where gold should stand!
    Answer: Don’t think the dis-connect is “real” yet. I have great confidence gold (and silver) will dis-connect from paper when paper really becomes frowned upon in a general sense.. (if that makes any sense)

  29. Brandon Holsey April 1, 2013 at 3:47 am #

    Stack on.

  30. richard33043 April 1, 2013 at 3:48 am #

    well of course when they move gold to tier 1 it will be in a league of its own ., i personally believe that the peoples opinion of gold (as money) has already started its separation from the dollar.

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