Explain····· It's a bit more colloquial.

The bank's assets may be very high and huge, but its market value is not the same, and many finances are written blindly without figuring it out.

For example, the Bank of America has trillions of dollars in assets, but its market value is only $200 billion, and the market value is calculated by the stock price.

The bank's net assets = the bank's assets – the bank's liabilities

To put it simply, (for example, if you deposit 100 yuan to the bank, then the bank owes you 100 yuan, which is equivalent to you lending 100 yuan to the bank, and the bank still needs to pay you interest, that's the case.) ）

Bank liabilities simply refer to the amount of deposits made by the public in the bank, plus some other debts, including debts owed by banks.

The market capitalization of a bank is also not equal to the net worth of the bank.

Explain why Standard Chartered Bank has assets of nearly $700 billion, net assets of $46 billion, and a market value of just over $30 billion.

There is also an explanation of Leo Vantaa, and his 'Vantaa Project' is often seen in it, the protagonist made tens of trillions of dollars, or hundreds of trillions of dollars, when the Soviet Union collapsed. Such a statement is not logical, economic, and financial common sense, and the statement on Baidu is also wrong.

At that time, the Central Bank of the Soviet Union was only a few hundred billion dollars in foreign exchange reserves, and everyone who did foreign exchange knew that it was impossible for the Central Bank of the Soviet Union to lose all its money in the foreign exchange market, let alone trillions of dollars.

The correct statement should be like this, assuming that the exchange rate between the Soviet ruble and the dollar was 1:1 at that time, and the total assets of all the public in the Soviet Union at that time were 100 trillion rubles, according to the exchange rate of 1:1 between the ruble and the dollar, it was an asset worth 100 trillion US dollars, but after the collapse of the Soviet Union, assuming that the assets of all the public in the Soviet Union were still 100 trillion rubles, the rupee depreciated wildly, and the exchange rate between the ruble and the US dollar became 1:100, according to the exchange rate, then the dollar value of all public assets in the Soviet Union was only 1 trillion US dollars。

Their wealth has evaporated by $99 trillion in dollar terms.

Every round of economic crisis will bring about a collapse in assets, and at the same time as the collapse of assets, the exchange rate will also depreciate wildly, so the more wealth will evaporate.

Here is also a popular explanation to explain why there are so many bank assets. There are three concepts, M0, M1, M2

M0 refers to the cash circulating in our society, which is about 5 trillion cash in China.

M1 is M0+ plus deposits from enterprises and institutions

M2 is M1+ plus resident deposits (i.e. the sum of individual deposits in society)

M2 can be said to be the total deposit of the whole society, which is also related to the base currency issued by the central bank. Generally speaking, the domestic base currency is 35 trillion yuan, minus 5 trillion yuan of cash in circulation, then the base currency in circulation in the banking system is 30 trillion yuan, and according to the 20% reserve system, a maximum of 150 trillion yuan of total social deposits can be derived. This 150 trillion is an extreme value in the banking system. In all domestic banking systems, the maximum amount of deposits added up to the extreme value is 150 trillion yuan, and if you want to exceed this figure, you need to reduce reserves, which is commonly known as a RRR cut.

Generally, when the economy is in a downturn, the monetary policy of RRR reduction will be adopted.

·············

Dollar deposits, including the banking system of the United States, as well as the banking systems of many countries around the world, are not discussed here, they are complicated.

·············

If you deposit 300,000 yuan into the bank, under the 20% reserve system, the bank can theoretically lend a maximum of 1.5 million yuan. The 1.5 million is also counted on the bank's balance sheet. At the moment, the bank's assets are 1.5 million.

In addition to shadow banking, shadow banking is usually private loans, such as loan sharks, P2P, etc., and the money lent out by CreditEase HP belongs to shadow loans······ It is not part of the domestic banking system.

The negative interest rate is the bank's deposit with the central bank, and this interest rate is negative. It's not that we have a negative interest rate on deposits in the bank.