Banking, Simply Explained

This is lesson 7 in my course "The DNA of Wall Street".
SOURCES:
UBS Annual Report 2022: www.ubs.com/global/en/investo...
Joe Biden Remarks: • President Joe Biden ad...
IMAGES:
Northern Rock Bank Run: de.m.wikipedia.org/wiki/Datei...
MUSIC:
Aesthetics (pixabay.com/music/beats-aesth...)
Funky Teaser (pixabay.com/music/funk-funky-...)

[@asgardro4434]

I have a question: are the rising of index funds being used by public endangering the survivability of banking system?

[@FinAndEcon]

That is a very good question, but I think the answer is no. Index funds invest in large companies, which are listed on the financial market. Banks are usually locally grounded and give loans to small businesses - which do not have access to the capital markets.

[@asgardro4434]

@@FinAndEcon True, but if more people recognize investing in index funds more safely in the future, this could lead to a decreasing in bank deposits right? This could be allarming for banks or there is somenthing that I’m missing here too? Thanks!

[@FinAndEcon]

Yes

[@kgosithembani5667]

How can one have 15min chart with you. I have a topic that's been causing me unrest for the past 2 years

[@FinAndEcon]

Contact me on LinkedIn :)