The Importance of Balance Sheets in Banking

The banks balance sheet rises by the new deposit created from the sale of the financial bank and it rises on that's a liability to the bank. On the asset side it gets a reserve credit from this from the Federal Reserve. Nobel laureate Sir John Hicks once said there's nothing more important than a balance sheet so that's that's the point of this lesson. People don't understand balance sheets that's all we're talking about. They're going to be completely lost"