Good morning and welcome to everyone joining us today for this event with the chair of the European Central Bank Supervisory Board Andrea Enria. Good morning Andrea. It's a pleasure to have you here with us. Good morning Georgina. My pleasure It is an honor for us to be taking part one more year to the European youth event in partnership with our colleagues from the European Parliament to talk about a topic that might not come as a given to most of you, which is why does banking supervision matter for your daily lives and also for your future plans? So I would like to encourage all of you to join today's discussion by sending us your questions. These kind of initiatives are very important for us at the European Central Bank because they are a very good opportunity to engage with young people like you to get to know you better and even more importantly understand how can we be of better help to you. So please send us your questions during today's event to do that all you have to do is log into slido.com type in the code hashtag ask ECB and then type your question and send it to us However, please keep in mind that the questions will be moderated so that we can ensure that we have as many different topics as possible to pose our questions to Mr. Enria today And this is also the reason why it might take some time until you see the question popping up on your screen Right after you've sent it. Of course as soon as you start seeing other people's questions I invite you to vote for the ones that you find the most interesting And now without further ado, let me properly welcome our speaker today. Andrea. Good morning. I am very excited to have you here today Thank you very much Georgina. I'm very glad to be to be with you and And I'm happy to welcome all the people joining online from Strasbourg and across all of Europe I must say I'm particularly glad to see how many young Europeans are interested in the rather arcane subject of banking supervision And I remember when I was a young economist just hired by the Bank of Italy My major objective was to get a job in the research department dealing with the big questions of Inflation growth Interest rate fiscal policy So when I was assigned to banking supervision and most specifically to department that was called programs and authorizations I was I must say really disappointed. I thought that these all sounded very bureaucratic boring And I couldn't be more wrong. I must say that since the very first day I I became very passionate about this job and as it is for most of the people for most of my colleagues in the same line of business and and It is an extremely challenging job where you learn everything new Every day I would say even at my old age 35 years in the in the profession And I hope here today that I can instill some of these, you know, interesting the job in Many of you so that some could maybe choose To develop their career in in financial supervision as we do need bright young people helping us out But this meeting is important to me also for another reason more more profound maybe And it is that your generation and the one immediately before you Have been hit particularly hard by the triple whammy of the great financial crisis in 2009 The sovereign debt crisis in the euro area in 2012 and then the the the pandemic the kovat 19 crisis in 20 in 20 in 2020 the labor market has been very Very difficult for young europeans. I see My daughters they are friends and I see Young europeans with outstanding CVs having done Postgraduate studies make more than more than one degree in Often in countries different from their own home country having done Outstanding very selective internship programs around europe maybe around the world sometimes and this not with standing sometimes is so difficult to find a formative well-paid job This this stage and So it is first and foremost with the prospect of your generation in mind that I would like to Look at the role that Banks and by reflection banking supervision and have played and could play Through these these these crisis. So what happened if you look at the great financial crisis You have a a tale of bankers excesses so excessive risk taking excessive complexity so financial innovation that was mainly used to To to to push up short-term profits irrespective of the long-term risks that were taken and An excessive leverage so too little capital to shelter the losses when these risk materialized and And the outcome was that unfortunately there was a need for massive support financial support from governments when the crisis materialized to bail out Banks and avoid meltdown in the financial sector and protect the savings of households and Ensure continued financing of of but this came to a A great a great cost and to avoid that these Happens again, of course, it was very important to engage at the global level as we did with a massive program of regulatory reforms and strengthening of supervision And it is important that we preserve this is something this is a hard one Result and we need to preserve it and sometimes I see lobbying from banks to deregulate to go back to some of the Old practices and I think we should be very careful in that in that space The the sovereign debt crisis is is instead is peculiar of the euro area and it highlighted some severe weaknesses of the construction of the monetary union and It showed in particular the strong connection between banks and their sovereign So we were in a monetary union But each bank in each country was strongly linked to the sovereign in that country and it happened through Different mechanisms sometimes the connection ran in in different directions So we had for instance that the impact of the great financial crisis on the Irish banks Was so huge that he created the major problem also for the for the public budget. So for continuing, you know Social expenditures And the like and the government had to ask for support from the From the european from the european union from the european financial stability fund In in Greece the the link ran the opposite direction. So it was the public finances that went into troubles with a widening of spreads with a severe risk perceived in the greek bonds and these Uh Contagion of the banks that went into troubles and and created a lot of concerns for again households firms and the economy at large um, and what is important to understand is that at that moment there was uh The integrity of the monetary union was at stake because uh, there was the perception that one euro deposited in a bank Uh in a country under stress was not of the same value Of a euro deposited in a bank uh in a country which was not uh under under stress And this implied that the policy started flowing from the former to the latter And this has been very destabilizing and and really putting the the whole integrity of the euro area at stake And it is only thanks to the bold measures that the ecb took at the time and the decision eventually of Of the the european council the parliament to centralize Banking supervision and banking resolution creating the banking union that the problem was dealt with effectively Also, thanks to these The response to these two crises so to the financial reforms the financial regulation reforms and to the establishment of the banking union Banks came to the appointment with the third shock with the pandemic shock much stronger And that was very important because banks in our system, especially in europe more than in other in our countries such as the us Are key in the financing of all type of firms from the small shop to the to the very large corporate large airline company for instance And so having you know these The banks continue to support the economy in front of the shock was of paramount importance Especially when the governments took the decisions to put our uh economies in lockdown basically our Not our economy our society in lockdown these of course impaired not only the ability of Borrowers to pay their debt to banks but also it created a huge Necessity to continue financing know these these these Companies and households also throughout throughout the pandemic where maybe their income was not was not there anymore And and I think that thanks to the massive support measures that have been deployed by government But also thanks to the attitude of banks that manage to you know continue supporting their customers also Throughout difficult periods that we have been able to overcome at least the first phase of this difficult crisis for banks It was very difficult because of course when you have a moment in which you have measures such as Payment holidays for instance. It's very difficult for a bank to distinguish a risky customer from no risky ones. So so the These at the ecb banking supervision We try to support this process. So for the first time we gave a very prompt unified european answer with policies that Were aimed at creating space for the banks to really support the economy So giving them some breathing space also from the supervisor regulatory point of view But also on the other hand being very tight on the Assessment of risk because what you don't want in a crisis like that is that banks become lax And then your build-up of risk that then materializes in a crisis at a later At a later stage. So I think that was very very important And now let's say if I look at what is keeping busy right now Of course, we don't have only the firefighting task in crisis. It's also trying to To prevent future crisis and if you look at the structural changes we are grappling with right now as as a european society Transformation of our economies Towards a low carbon economy and the green and climate issues Are becoming of paramount importance. So how does banking supervision fit into this picture? Of course banks will play a major role in financing this transformation of our economy And in doing so it is important that they are very alert to the Risks of of this transformation, especially climate risk, you know So both the physical risk or the risk that there will be more frequent Uh Floods or wildfires that will affect, you know destroy houses and and and livelihoods of our citizens But also transition risk. So there is that the transition to a low carbon economy could be particularly bumpy Maybe because the governments do not react Fast enough and then they have to steepen up their Response at a later at a later stage disrupting also the price mechanisms and the the balance between sectors. So By pushing banks to consider these risks we force them to think long term to think also to these long term risks and to Make this themselves better in supporting exactly these these much needed Transition, uh, so they will serve better Themselves their balance sheet They will serve better their customers in the euro area and the whole planet as a as a result So I Georgina, I hope you I was able to cover a little bit of examples of the Things we are grappling with why banking supervision has been so important also for uh, young young europeans and I hope I gave you also a flavor of our Challenging and interesting these jobbies, but I I do really look forward to the questions and to the interaction with with the whole audience to to uh respond your questions and maybe also touch on some Features of our daily jobs and see whether any of of the young connected today Can can be attracted by this type of job. Thank you. Yes. Thank you, Andrea for these very insightful remarks And I am very sure that if we have any aspiring supervisors in the room I think they were a very Motivational boost. So that's really good. And I mean, let's just jump straight into it. Let's start to Our q&a session, but I would actually like to begin the other way around I would like that for starters. We ask you questions that you will answer for us So I'd like to invite all of you to please go to our slido event and answer a couple of questions that we prepared for you To get to know you better and see a little bit. Uh, where are we standing for today's event? And I'm going to give you a couple of minutes for you to do that and in the meantime I'd like to use this opportunity to ask um, Andrea today a question that I'm personally quite curious about You mentioned Andrea that at the beginning banking supervision didn't came to you as a let's say a passion from the start It's something that increased later. And I'm wondering what would you say right now? It's the your favorite part of your job What do you like the most of it? Well, I don't know whether I will do a favor to the job of supervision, but let's say what What really attracts me to my job right now Is really the european dimension. So the fact that you know You do connect with Very diverse problems In the in the in the in the banking union across across our area And you have every day, you know a different challenge and it's so Uh, varied so, uh You know stimulating But especially you always have on the back of your mind that you are serving the interest of european citizens And that's I think in terms of motivation That's something that no other job can give you I think Thank you. That was quite inspirational Um, let's have a look at our audience. Let's see if we've given them sufficient time to answer I think so we have here in front of us a screen where we can see the results and also the the questions that you submit And it's very interesting to see that most of you Are are willing to learn and improve your knowledge in banking supervision And I think that's a great starting point for today's event And if I look at the next question you answered for us I can see that most of you agree that we need healthy banks to have a healthy economy I'm sure we will be talking more about this in today's event So now yes without further ado. Are you ready? Andrea? Shall we start? Shoot Then, uh, let's go for it. And our first question is from maria. Who wonders During the pandemic banks have increased their leverage significantly. How do you ensure that banks continue fit for purpose? Uh, well, um As a matter of fact banks themselves have not increased their leverage Especially if you look at the risk-based measures of leverage banks have improved their capitalizations So they have raised their their capital compared to the overall balance sheet the size of their balance sheet but uh, but I think that The question is right in the sense that there has been a huge increase in the leverage in the economies at large And uh, this is increasingly financed by Non-bank financial institutions, but these non-bank financial institutions to a large extent take their funds from banks so, um This is making my job more difficult the job of supervisors more difficult because It's not sufficient to look in the bank's balance sheets, but it's important to understand how The contagion could run through a non-bank financial sector, which is In most cases not regulated or very lightly regulated So you don't have a lot of visibility on this risk or now they we had recently, you know in Before the summer these case of a small u.s. Family office, you know archegos was called that went bust Creating more than 10 billions of losses to the largest global banks indirectly, you know He so where you expect the the risk management to be at the top level No, so that's that's really what concerns me and what That you have indeed a massive increase in leveraging the economy And especially when we are going to exit from these extraordinary low interest rate environment I mean it might be Difficult and and these non-bank financial institutions and the indirect risk on banks are very very delicate. I think Thank you Our next question which received quite a number of votes. So it seems many of you are interested Martin asked it and it says is open banking the future of banks in general? And is that the right path to open finance? Look open banking has been Now sometimes let's try to clarify technology at least as I understand it. No, there has been a A strong pressure from policymakers at the european level especially in the payments area to Enable more competition. So to enable more non-bank payment providers such as paypal clarna and like to access directly the bank accounts your bank account and to Initiate your payment so that you can realize on other smart operators technological Companies to get a better service And that was important because banks were charging very high fees in this area There was little competition and consumers were not served well enough I remember especially at the european level to move funds from one Member state to another I mean it was really a pain both in terms of the time you needed and the fees that you are supposed to pay so, I think that Opening the banks accounts and enabling more competition in in that area has been indeed a most important Development and very much welcome Now What does this mean and what does the technological developments mean for Banks in general and banks in services in general. This is a question to which I think if anybody tells you that He or she has an answer is lying I think it's very difficult now to understand My impression is that at the moment these Opening also through technologies of financial services is affecting some segments in which indeed the banks were excessively charging excessive fees or consumer finance payments in other areas. So like financing, you know The green transformation Projects and the like I think banks especially in Europe still have an important An important advantage But I think that they need to invest in digitalization as well because otherwise. Yes, it is possible that they will find themselves In in in in extinction mode. I remember there was an article by Bill Gates actually in the late 90s saying About dinosaur banking Defining brick and mortar banking as dinosaur banking. I don't think he's right. It was right then and we are now seeing that Brick and mortar branch banking is probably Going to extinction, but this doesn't mean that banks Necessarily will go to extinction as well. They need to react. Yeah, indeed. I guess progress never comes without challenges, right? um Our next question. I think many of our participants today are wondering about this Alex asks asks you As a young european, why is banking supervision important to You know again the the the the the issue is that banking Are an important technology in a sense that we invented some time ago to make sure that you can give to the To the savers The safety on their funds on the fact that their funds are safe Depositors in particular And at the same time finance More in liquid more risky projects that are important to you know to push growth in our economies To do that banks are traditionally highly leveraged institutions So if they go bust Then you have a a double whammy on both sides of the balance sheets on the one hand. You have the problem for your savings That are in the bank and many people panic that you remember in the some of you maybe No, some maybe you are you are too young to remember, but uh Even nor the rock in 2008. I think it was seven eight You had queues of people with wheelchairs in front of the banks because they were concerned they were unable to move their deposits from the bank Online and they were queuing the night In front of the banks to get their savings back and on the asset side because of course when the operation of the banks is disrupted I mean firms that need you know The liquidity to run their their their operations every day can get into into into great trouble. So Is there a peculiarity for you being young in that? Well, maybe uh being young you don't have a huge stack of savings yet I hope you will make a good one going forward But still I think that you as I mentioned before I mean you're seen on your on your experience That if banks entering to difficulties then the economy Goes uh to the to the floor and this is bad for employment. It's bad for growth And it's bad, especially for the youth unemployment. We have seen the youth unemployment skyrocketing compared to the General unemployment figures. So I think that's the most important point. Yeah, thank you. Andrea. I I couldn't agree more Um our next questions goes back to the topic. We were mentioning earlier about banks health Um massimo asks when it comes to a healthy bank, is it in terms of stability or also profitability? There is a trade-off between the two components post pandemic and what scenario will accompany banks in your view Look profitability. I mean, I don't see these trade-off between profitability and stability so A sound bank Needs to be able to make profits to attract investors And if it has also some troubles needs to have, you know, the ability to tell investors I will make profits in the future and remunerate your investment. So that's important for the also for the stability of Of the bank, of course, there there could be a trade-off In certain circumstances When the banks start Becoming more fragile Then they can start taking uh bets in the markets a strategy that sometimes is called gamble for resurrection No, so you're starting getting weak and then you say, okay, I'll invest in riskier Areas so that if the gamble works I get the money and I restore my viability And usually these strategies all and wrong, which is one of the reasons why Our job is important because when you see a bank becoming weak, you need to intensify the monitoring On their on their risk taking so there isn't this this trade-off I think that post pandemic We do also have a structural challenge to push banks to invest more in digitalization to be able to serve better their customers And to become more profitable also and more viable in the in the longer term If the banks miss the train of Digitalization and climate change. I think that they they they will be in trouble I'm sure we will get more questions on that topic later on But now the next one is um quite personal Alexandra wants to know what words could you um, what words of advice could you give to your younger self? well I mean investing yourself really, I think that the most important thing is is investing in in learning Whenever you choose a path in your professional development Try to choose the path that Increases the most your I mean the economists call it human capital. No, sometimes I thought this was a bit You know A bit cold, no talking about capital when you talk about people, but it is it is a good I mean, it is your wealth actually, you know, how much in you you learn I mean the the the anglosaxons generally tend to say that there is a sequence in your professional development know learn Learn serve no and so first you you learn Then you start making some money And then and then when you have enough money you start serving the community in a in a more direct way Now for those who do my job Maybe you don't learn that much that you could do in the in the in the private sector But you have the benefit of serving from the very beginning so of feeling this This sense of service from the very beginning, but I think that the learned part Especially in the first part of your career is the most important. So if you have to choose a job Yeah, look at the pace leap, but look especially at The if you have people there that can teach you they can pass to you knowledge That can really make you grow. I think that's the most important thing Yeah, I agree and and I could imagine now some of our viewers nodding at the screen while you while you say this Our next question reading it. I just realized we've been talking a lot about banks health But actually we haven't decided we haven't defined what what is what are healthy banks and this is mashas Next question She's wondering what are healthy banks and how can she know as a consumer if her bank is a healthy one Well There are many ingredients of what defines a healthy bank. I think One thing that I learned throughout my career is that one key ingredient is governance No, so and this honestly is not true only for banks. It's true for any organization including our So if you have you know processes that select The members of the board the managers People that have the right moral compass that have There are diverse also diverse not only in terms of gender maybe race, but also diverse in terms of skills of Knowledge so that you can have a good You know mix a mix of people in the in the in the top in the top management is especially Having good challenge in within organization when you have the thing that I learned the most is that when you have a bank Which is dominated By a very strong personality That nobody There's to challenge That's a bank that can do huge profits for a certain people of time and then generally crashes against the world So governance is a key is a key element Of course in terms of financial a well-capitalized bank is a is a more solid bank and and The on the asset side what we look at is the asset quality. So how much Loans are non performing which is a signal that the bank has been granted loans to customers that did not warrant to be to be those those those loans and and So these these are the main ingredients, but the second part of the question is the most important maybe Having supervision to some extent is done exactly in order not to have customers Bothering about About the quality of the bank If you invest in a bond if you invest in shares you need to read the prospectors and understand which Let's say which investments you are making. So what is the quality of the issuer? And you have to take a responsibility if things go wrong. It's your responsibility. You take the loss When you put your deposit at the bank In most cases you choose the bank that is close to your home or close to your office Uh, maybe the one which has the best up to to access the services But you shouldn't really Be requested to understand whether this bank is sold or not. That's delegated to us So we act on your behalf in that respect, which is what makes our job also you know Carrying a big weight of responsibility to some extent, but but that's that's that's how I see it Yeah, and I think that's also a very good example that explains to young people another reason why they should actually Care about banking supervision as well Our next question from alex Based on the challenging labor market situation. How can you still distinguish yourself in order to enter into the financial sector? Well, the the financial sector, I don't know. I tell you how it should be I'm not sure especially if you look at the private sector. This is indeed the case, but I think that there was a moment in in In the 2000s in the early 2000s in which The greatest asset to enter a well-paid job in the financial sector Uh was for instance to be a quant to have a high skills in modeling I remember there was a huge wave of people graduated in physics that entered the financial the financial industry and that was important because not only because Models were becoming the Uh also recognized by regulators were becoming the the key yardstick to assess risk, but also because uh, you know Banks were engineering more and more complex products and that would require a lot of skills in terms of modeling the features of these products Uh, I hope that this age of complexity and although let's say of course quants are very welcome in the industry and And it is a very important skill set to access finance today. I think that now There should be a search for a A wider set of competencies and I think that if I had to say The skills, I mean again, it's in my view you need a broad understanding of Uh, you know economic concept, but you need also to be able to read some regulations Because it's a highly regulated environment. So you need to develop also these these type of skills and And especially, uh, I think that you will need more and more knowledge on New technologies. I mean this is becoming A An asset which is in high demand Uh In in in the banking in the banking industry, but again, I would strongly argue that the necessary ingredient is also Your your values. So, uh, There was an a book, uh, I can't remember the name of the author. I'm afraid my memory, uh, but, uh, during the great depression that drove also the reforms in the in the In the u.s. Uh, uh, regulation, uh by any Very renowned judge, you know that has seen really the The crisis in the banking sector and, um, It was in the heading of the book is other people's money. So banks play with other people's money So they need to carry the responsibility of that and they need to have strong values to do this job properly Thank you. Our next question touches upon, um, a topic that you mentioned also before, which is climate change Marie is asking how are banks affected by climate change and how can they contribute to accelerate the green transition? Well, banks are affected very directly by climate change. Of course, I mean, we've seen these Some are also Flight flooding wildfires. I mean these events, uh, destroy houses properties You know firms so and and these are counterparts of banks. So if you had accepted these, uh, Building as a collateral, of course, you you as a bank have lost your money and and And as I mentioned before Besides the physical risk that is also the transitional risk that in my view Is maybe less immediate But is a risk that I think is very relevant. So there is that, uh, you know, because of the difficulty of Doing the right thing from the political point of view in supporting the green transition Uh politicians that need to be reelected will be under great pressure by their voters You know not to take choices that might damage maybe Some companies or or destroy some works or some job opportunities in some areas because and because of that they could be late in really, uh Driving the the transition and then it could be as these Processes tend to be non-linear You can come to a point where you need to accelerate very fast The repair measures the policy measures and these could be very disruptive also in terms of Some sectors being requested not to smoothly move to a low-carbon Economy to a low-carbon processes, but to really get out of the market From one day to the other. So that's the second big risk And of course if banks are heavily exposed to these sectors, they will pay a big price Um, so the the the the key point for us is that banks manage these risks Proactively now so they cannot wait. Sometimes I hear people saying, you know, if you look at the average duration of a bank portfolio three to five years, you know, so Three to five years not much will happen. So why should banks move now, no? And and and this is my opinion, maybe I think that uh, Exactly because these changes are going to happen Maybe 10 20 years from now you need to act now To avoid that this is so disruptive not only on the banks, but also on the on the community at large So they need to actively manage these risks try to get the information information is the first point We are running a climate stress test next year And the banks were complaining because we are asking data. They don't have they say for instance We are asking the energy performance certificate of the building that they have Accepted as collateral and they say we don't have this information And our response is okay We can do proxies and estimate but you need to have this information because this information is relevant in the Netherlands already The government the parliament has passed a law that if you have for instance asbestos in your buildings I mean the building Cannot be used anymore as office or residence from a certain date on so if you have asbestos in the offices In that building the collateral value goes to zero. You lose all the money tomorrow So there could be policies that have big impact and banks need to get this information Right now. So, uh, that's that's an important point. We keep pushing the banks and I must say that they have been Candid in admitting that they are quite far away from where we want them to be But also responsive in the sense that they understand that they need to move and to move fast Absolutely. Definitely climate change is on top of our challenges but not the only one and Christian is asking precisely about another one of this which is the pandemic in your view, Andrea What are the key challenges for european banks beyond the pandemic? but if you if you look at beyond the pandemic so when the pandemic and its effects and are done and over I think again digitalization and climate change are the two main challenges But we do have some way to get there still. No, so the pandemic is still with us And I've seen, you know different phases in our way of Thinking to the impact of the pandemic so the the first phase was basically You know Very concerned that there would have been a Genuine systemic stability impact so that there could be so many corporates defaulting so many households unable to pay their their debt that You could have a massive stability problem in the european banking sector um Now the pendulum and that was with hindsight was probably an excessive concern because there has been so much support from governments and from monetary policy by the way To the economy that these risk has not materialized as as deeply as we expected corporate insolvencies Have started increasing a tiny bit, but they're still below the pre-pandemic level Still Uh now the pendulum is switching a little bit to swinging a little bit too much in the other direction So I see banks, but also the general I mean economies starting developing an excessively rosy Expectations so the problem is gone Asset quality problems will not materialize and and we are now In a rebound in a faster rebound of our economy. Everything will be well Uh, I think that uh, uh, although there is going to be a rebound in our economy strong rebound in our economy It might be uneven across sectors across firms, uh For instance, uh, take, uh, commercial real estate Will we have the same price for office space going forward if if eventually We'll have much more reliance on remote working as we have seen during the pandemic So, uh airlines Will we have people traveling by plane as much as they did before the the pandemic will be also the Environmental footprint of certain of certain Sectors of firms be a An important element in understanding who comes back after the pandemic and who does not come back after the pandemic So it can still be that we have, you know Uh problems that materialize from now until the exit Uh, and and I think that that's why we are encouraging banks to be very Very focused on effective Risk controls because that's the key element to to avoid big damages Going back to, um Challenges Uh, Emma asks how do you imagine that banking supervision will change and adapt in response to the introduction of a digital euro And also with the increasing popularity of cryptocurrencies unstable coins Ah, can go to the next question No, that's that's that's a question on which, uh, I'm to be honest. I'm thinking a lot I don't have yet a lot of a lot of answers. Um I think that behind, uh, let's say All these innovations, uh, there are important technological shifts. There are important innovations such as, uh distributed ledger Technology and the like that can really make a change in a number of areas And uh, uh, sometimes I see that the gut reaction of policy makers is We need to regulate we need to and uh, and uh, and I think it's very difficult No, because on the one hand you don't want to jump the gun and start, uh, you know Killing all innovations in your in your jurisdiction By submitting, uh, you know new startups that develop new products in And requiring high compliance costs On the other hand, of course, there are risks. We have seen already especially in the in the in the crypto asset space Uh People losing money, you know, some of these, uh Exchanges are failing from one day to the other and there is a very legitimate concern also that, uh The anonymity that is one of the key features of these of these technologies Could provide a very easy channel for, uh Criminals that want to lower the money that they made in in in illegal ways So, uh, it's a it's a difficult it's a difficult question. Um, how to, uh, how to take all these private initiatives With these private initiatives, uh, in a in an effective way, uh, I understand that for instance in the us They are thinking about attracting these these Uh, uh firms, um under, uh, sort of bank like regulation And i'm still scratching my head because I think the bank regulation is actually tailored to other type of issues Not looking at the risks in the asset side. Well, for these companies, it's more probably As I said anti-money laundering governance and and operational resilience so that they could continue providing their services through time Digital euro is is is a is a very important project. I think the central banks are right in, uh, Moving in a territory that, uh, enables also citizens to benefit from these from these, um These innovations there is of course a concern on the impact these could have on banks, uh, especially if you think a moment in which there is A perceived risk of a crisis, for instance, no, if everybody could move from a commercial bank deposit to, uh The digital euro at the central bank, of course, you would see everybody shifting their their savings there and by By construction these would make the banks even weaker in a situation of an impending crisis. So we need to think about Mechanisms to have a proper interaction between commercial bank money and and the digital euro And these will be I think a cb is already announced will be a key area for Thinking in the in the development of the project, but it is a very Very difficult area and because it puts really Very fundamental questions of why do we regulate financial firms and how far should we go in the regulation of financial Yeah, definitely a topic to keep a close eye on And since it seems we are running out of time I am going to ask now the last question of today's session which comes from elena She asks what are the opportunities for young people to gain professional experience at the ecb Oh, I mean we are very first of all, let me say with some pride that, uh ECB banking supervision is a very young organization. So the fact that we were we are still I still think that we are a startup We are doing a transition to a more mature organization right now, but we are still a very young institution. We were set up in 2014 basically, so it's really very very very young and Uh, we hired the recent lease which means that also in comparison to our colleagues on the central banking side. We have a An average age which is which is lower And I think that exactly because of the structural challenges that we have ahead of us. So, um Green digital very young blood coming in the organization is is very very welcome. We have a traineeship program, which is a very important channel for Getting to know ecb banking supervision working with us and I can tell you that our Managers are very keen to give also quite delicate tasks to be young young trainees and We do have also, you know graduate programs and and and Really, I would invite all of you to you know browse what interested of course to browse our website and And keep abreast of our of our initiatives. We really need young motivated Professionals to to to join us Yeah, absolutely having been an ecb trainee myself I couldn't agree more and I absolutely encourage all of you to keep an eye on our vacancies and That concludes our q&a session for today. That's the end of our event and I would like to of course, thank you all of you For your participation. I hope that you enjoyed this session as much as we did Please let us know by answering a very short feedback survey that we prepared for you on slido So that we can't collect your feedback, which is very important to us And obviously we cannot end without properly thanking mr. Andria for joining us today I hope that you also enjoyed the session Andrea. I enjoyed very much I'm sorry that we didn't manage to cover all the questions, but I really enjoyed it and thank you very much Regina for hosting this Thank you. It was great having you here and before closing I would really like to encourage all of you to stay connected with us at dcb with what we do Follow us on social media. And if you are interested Have a look as well have a look as well at our website where you will find plenty of Explainers about what we do but also about more specific initiatives that we implemented in extraordinary Circumstances as Andrea mentioned earlier like the coronavirus pandemic And please keep in mind this is not the only initiative that we organized for young Europeans like you We also offer competitions scholarships to find master's studies Which I encourage all of you to keep an eye on on our website Thank you once again to all of you for sharing this Saturday morning with us I hope that you enjoy the rest of your weekend


I've always lived out this way in footballs, it's a big part of kids lives around here and everyone likes football. It's a real honour to play in A-League for Western City. I played for Carlingford Redbacks for about four or five years and yeah that's where I first started. My mum told me that I came in from school one day and just said I wanted to play football. Yeah that's the reason. My family's, I haven't got a footballing background or anything. Rugby league and stuff like that so yeah. When I was a kid I always had a dream to go and play overseas and well when I was 16 I moved to England to play at Bolton Wonders. That was my first little contract so yeah that was a great experience. I was a top club in England so it was very professional so I was around top quality players and the facilities and everything was unreal so it was a great place to learn the game. I was at Bolton for four years and then I decided that I needed to play first team football so I went to Scotland, St. Moon, was there for two seasons, played a fair bit of first team football so that was good for my development. It was a great experience and I really enjoyed it. They're all nuts for the football over there, that's all they're talking about so it's a lot different to Australia. The paper is the back page that hotens all football to sport whereas here's a couple pages so it's like live or die over there so everyone's into that football so that was great. Well I was still contracted to St. Miriam at the time and everyone was talking about the Wonders so I told my agent because I wanted to come back to Australia and try and play regularly more and so I wasn't really enjoying it that much at St Miriam at the time so my agent looked into it and then set up a meeting for me to meet Papa and yeah I spoke to him and he sold me straight away, the way he talked about what he wanted to do and the way he wanted to bring the team, build the team up and his thoughts on the game so yeah I was I was input straight away and yeah that's how it came out. Yeah it was unreal, we didn't start off that well but we stuck to what the team believes in and that paid off throughout the season and ended up winning the Premier's play which was unbelievable in the first year so yeah it was hard to describe how I feel about it but I'm very proud. There's obviously a lot more pressure on us this year because we won the league last year so everyone's expecting us to do it again. We are as well so yeah we're just gonna stick to what we've been doing throughout the last two seasons and hopefully that works again. Every player wants to push himself to maximum level they can. The level I'm at now is the A-League and that's where my head's at so I'm gonna just try and play as well as I can and see where that takes me. If it means maybe in the future that I go overseas and yeah that would be unreal.


Hey everybody, this is Brian. I've got a bit of a problem. I'm hoping somebody out there has a solution too. I'm running Ubuntu 16.04 long-term support and I have got the newest version of Qt Creator 4.0 Well newest as the time of this recording, which is based on Qt 5.60 and there's the build and everything What's going on is everything seems to work unless I do a QML project And this is just you know a very basic project. There's nothing special to it and It seems to hang right here on engine load, so it'll make this QML application engine and I'm not sure if it's engine load or if it's actually the constructor of this I haven't really had a chance to deep dive into this thing But what happens is when you run this the application actually runs and you see the application window blank down here Now I can go in here And I can access all of Qt Creator and everything seems to work while it's running But when I close this bad boy It's almost like you know everything freezes. I don't know if you can hear me clicking, but I'm Trying to open that main CPP. I could right-click But nothing happens and it's just it's like it just freezes up So and you know even these side buttons here some works some don't it's like nothing really works here, so I didn't actually kind of go out and Google this but Nobody else seems to have the answer either One person said go out and disable QML debugging and I know I'm gonna get a lot of those responses and just for the record here Let me crack this project back open QML debugging and profiling is disabled But same thing when I go to run this While it's running I can do pretty much whatever I want to do But the minute I quit the application It freezes up and just bam doesn't work everything locks The only way I found to fix it is to actually close out Qt Creator, which is a royal pain if you're trying to do any sort of development So that's it. I'm hoping somebody has an answer to this. Otherwise. I'm gonna have to move my QML tutorials to either my my Mac Airbook or my Windows 10 installation and I'd much prefer to stay in Ubuntu if possible. Thanks You


Eurydine monophosphate is one of the most effective nitropics on the market. But what does it actually do and what to expect from it? Now, I've been taking it daily for the past couple of months and in this video, I'm going to tell you how it impacted my life. Hey friends, welcome back to the channel. My name is Greg and I'm a certified brain health professional. If biohacking, nitropics and optimizing brain performance interest you, then subscribe below and join our amazing community. Now, just before I share my experience with Eurydine monophosphate, let's check out what this entropic is and what kind of benefits you can expect from it. Now, Eurydine monophosphate is a phospholipid and a building block of DNA and RNA. Eurydine assists brain function in multiple ways. First, it promotes neoride outgrowth. This is important because a proper synaptic function is crucial for optimal brain health and performance. And we know that by taking Eurydine monophosphate, you can increase the neoride outgrowth. Secondly, Eurydine can boost dopamine levels and it can also speed up dopamine transmission in the brain. Now, Eurydine is also the precursor to acetylcholine, which is an important neurotransmitter for cognitive performance, memory and learning. And lastly, Eurydine acts as a neuro-protectant as it can promote the growth of neo-neurons and protect your brain from the toxic beta-amyloid. So, what kind of benefits can you expect from Eurydine? Now, it may help prevent dementia and Alzheimer's, it can improve memory and learning, it reduces inflammation in your brain, it may reduce depression, and it may help with several other cognitive issues. For example, studies show that it may be beneficial for people with Huntington's disease, people with epilepsy and seizures and for people with bipolar disorder. Now, before we talk about the potential side effects and optimal dosage, let's check out my experience with Eurydine Monophosphate. By the way guys, have you ever tried it? And did you like the effects? Let me know in the comments section below. So, I've been taking Eurydine Monophosphate for several years, first as a part of quality of mind, but for the past couple of months, I was taking it as an individual entropic to see how it impacts my brain performance. And what I found out was quite amazing. So, I've started my test by taking 250 mg of Eurydine Monophosphate per day, which seems to be a perfect dosage for long-term use. For example, quality of mind contains exactly the same dosage of Eurydine. So, I took one capsule of Eurydine in the morning after my breakfast. For the first couple of days, I didn't notice any effects, which is what usually happens with nitropics. But since I knew it's a very beneficial and potent tropic, I continued taking the same dosage. Now, after a few weeks, I started noticing an additional brain boost. It felt like I had less of a brain fog and my brain started working better. But keep in mind, I was still taking a low dosage of only Eurydine Monophosphate without any other compounds, so what I did next was even better. By the way, are you searching for the best nitropics for your individual needs? If yes, go for a free brain assessment, link below, and get a personalized recommendation for the best nitropics. So far, I've been taking one capsule of Eurydine Monophosphate per day, and this is about 250 milligrams. Now, what I'm going to do is I'm going to double the dosage to 500 milligrams of Eurydine Monophosphate daily. Now, according to some studies, this may be an even more optimal and potent dosage, at least for short term use. So, yes, I'm going to try it now and see what happens, how it impacts my brain performance. Now, in addition to that, I'm going to combine Eurydine Monophosphate with Citicoline, which is a cooling compound, and I'm going to take about 300 milligrams of Citicoline daily, and in addition to that, I'm going to combine it with about two grams of algae oil, which is an omega-3 fatty acids oil or supplement that contains EPA and DHA. Now, you can combine it with classical fish oil, so with omega-3 fish oil if you want to, but I just prefer a source from algae because it's cleaner and even better for you, but usually more expensive. Then I'm going to continue taking this combo for a while, write down everything that I noticed in terms of how my performance changes or improves or whatever happens, and then I'm going to tell you what actually happens if I can see a difference in my performance. Now, it's kind of hard to say what kind of effects am I going to feel because Eurydine Monophosphate is not a typical entropic that delivers those short-term effects, but hey, I'm open minded. Let's try it out and let's see what happens. So I've been taking this higher dosage of Eurydine Monophosphate for a few weeks again, and I definitely had even more brain power than before. Now, the main difference that I've noticed was in the afternoon. It seemed like I could work longer without experiencing brain fog. So while I cannot judge the impact of Eurydine on my memory and learning capabilities, because that's really hard to measure, I definitely noticed having an improved mental performance, but that's not the main reason why I've been supplementing Eurydine Monophosphate. Now, before I tell you why you should consider supplementing this potentropic compound, let's talk about the optimal dosage and the potential side effects. Now, the optimal daily dosage of Eurydine Monophosphate is between 250 milligrams to 1 gram. Dosages used in studies vary from 500 milligrams to 1 gram, but for long-term use I prefer to stay on the safer side, so I suggest taking between 250 to 500 milligrams of Eurydine Monophosphate. As I mentioned earlier, it makes sense to combine Eurydine with a cooling compound, you can learn more about it in this video up here, and omega-3 fatty acids. Now, regarding the side effects, Eurydine Monophosphate is very well tolerated without any major reports of side effects. For the best result, you should start your Eurydine protocol by taking a small dosage and then slowly increase it. Eurydine is generally not recommended for people with cancer, diabetes and heart issues. Of course, do consult your doctor before taking Eurydine. So, who is Eurydine Monophosphate best for? Well, it's particularly recommended for individuals who want to amplify the effects of their brain performance or for those looking to enhance their motivational levels. Also, people who feel that they may have become desensitized to dopamine-enhancing supplements can also give Eurydine Monophosphate a try. Other than this, if all you're looking for is additional brain development benefits, such as healthy cell man brains and brain cells, then you can consider taking Eurydine Monophosphate as well. So, generally, I think Eurydine is a great natropic for high achievers who care about their brain performance and brain health. So, what's my final verdict about Eurydine? Well, based on the available research and my personal experience, Eurydine Monophosphate is a great natropic for brain health and performance. It is potent, it is safe and pretty affordable. For example, a bottle like this bought on a tropics depot with 60 caps costs about 20 bucks. And I think that's not too expensive. By the way, there's a link below if you want to order it. However, I generally recommend taking it with Kohlene and Omega-3 due to the management synergies. So, check below my favorite natropic stack that contains Eurydine Monophosphate with those compounds. Speaking of combining it with Kohlene, watch my next video here, where you can learn everything you need to know about city Kohlene, my favorite Kohlene compound. Thank you guys for watching and I hope to see you soon again. Stay well.


I encourage you to do something. It was basically learning the history of our sports, of running, because it is such a rich history. Good afternoon, video two, publishing today. Oh, what a great topic. I, okay, I love reading and I love learning. But since I started the daily vlog, my reading has been reduced dramatically because I just don't have enough time and I'm too tired to read. Therefore, about two years ago, I started thinking, huh, maybe I should start learning while I'm running. So when I run, I'm often about, I'd say about 80% of the time, I'm usually listening to something. On my workouts, I don't listen to anything like the really intense threshold workouts I like to focus on my breathing. But when I'm going out, just getting the miles in, I'm often listening to something, okay, whether it's a podcast or an audiobook. So here we go. I love, so this YouTube channel, I love connecting with you. I love inspiring you, hopefully. I love capturing beauty through the daily vlogs. But in addition, the resources that we are all sharing collectively down in the comments, it's amazing. And it's, I would say, a very high feature of this channel because of your contribution. So here we go. Question of the day. What has been your top running podcast of 2019 and your top running book or audiobook? Preferably, I would say, but most books these days are audiobooks as well. So top audiobook of 2019 that is connected to running. That's the question of the day. It's all about learning together. Remember what I said last week about if I could encourage you to do something, it was basically learn the history of our sports, of running because it is such a rich history, okay? So anyway, that's the question of the day. Go down to the comments. It's gonna be amazing. But here are my top three running podcasts of 2019. I'm gonna keep it pretty quick. I'm not gonna say too much about it. You just gotta go see if it piques your interest. And I have them written down here. So number one, here we go. The British Ultra Running Podcast. So as you know, I'm an ultra runner who's transitioning back to the marathon. But this British Ultra Running Podcast is a lot of good banter, great accents. Shout out to all the Brits out there. And funny and what they do, it's two guys, James Elson and Dan Lawson. They're basically talking about the sport of ultra running. So distances past marathon. So 50Ks, 50 milers, 100 milers. But here's what's crazy. Dan Lawson, he's actually, he's kind of insane. He does these, Dan, I love you. I don't know yet, but I love you. I say it in a good way. He's kind of insane with respect to, he does these crazy like multi-stage races. He'll do like 500 mile races, 1,000 mile race. Just these crazy long, long 24 hour races, 48 hour race. Just these amazing long runs. So, but what's beautiful about this podcast, now I will say their publishing schedule is a little sporadic. I still love you guys, don't worry. But they, they're banter. Their banter is just top notch. Meaning where they're just kind of riffing together a little off topic, a lot of times on top. It's just so funny and it's very enjoyable. It makes the miles go by when you're out there on your long run. So, number one, the British Ultra Running Podcast. Number two, Runners of New York City, hosted by Gene Mack and Chris Chavez. So, I actually was gonna pull up a few of their most recent podcasts just to share with you, some that jumped out at me. So what they do is they interview runners of New York City or runners that are connected to New York City. So when I was getting to race my New York City marathon this past fall, I was like, gosh, how am I gonna learn about New York and really get to understand the culture of running in New York? And I love, I must say, I have mad respect for New York and Boston and Philly to a certain extent, but like the culture of running in those regions is strong. And there's a lot of good running clubs in those regions. It's a little different out West. Anyway, mad respect to like the runners of the 60s and 70s of New York City that just kind of planted the roots of running out there. So, Runners of New York City hosted by Gene Mac and Chris Chavez where they interview different runners, some that jump out at me, David Perry of Adidas, Malcolm Gladwell was a good one, Lindsay Krause was a good one, Lucy Pez Stelsner of Distance Project New York City. So, if you love New York City, which I do, I love the history of New York City. That's another good one. Runners of New York City is the name. Okay, number three, Ultra Running History hosted by Davey Crockett. So, I believe he lives in Utah. Again, you know I'm an ultra runner transitioning to the marathon, but he, I don't know how he does it, but and it's, okay, Davey Crockett, I love you, but some of his, so he does a lot of, what is it called, sound effects in his podcast, pretty high quality production value, but a little cheesy at times, but I like it, Davey Crockett, keep it going. Basically, he gives the history of ultra running, but for example, there was an episode this past year where he dove into the history of ultra running, that, and it wasn't even called that back then though, in the 1800s in England, where they were having, I don't know if you knew this, back in the 1800s, they had thousand mile races in the 1800s, and these runners were actually, they were wagered on. So, people would make a lot of money on these runners who tried to run or walk, excuse me, who tried to run or walk a thousand miles without, and the one rule was that they had to cover a mile every hour, so it created these really bizarre sleep patterns anyway. Davey Crockett, thank you for the podcast where you really get immersed into the history of ultra running, and I learn a lot, so anyway, I love that one, it's called The Barclay Match is this event, this a thousand mile event in England in the 1800s. Okay, moving on, I'm gonna try and be a little quicker here. So, those are my top three podcasts, my top three audio books that I listened to in 2019, getting ready, so my first one, here we go, A Race Like No Other, and by the way, these three books are available down below, A Race Like No Other by Liz Robbins, it's all about, yes, the New York City Marathon. Each chapter is broken into each mile of the race, so she walks you through from start to finish, chapter 13 is called chapter 13.1, I think the last chapter is chapter 26.2, and she interviews the elite runners, so she highlights the elite runners in the race, but also just normal everyday folks in the race, and she gets these amazing stories, and it's a highlight of the 2007 New York City Marathon, I do believe, yeah, 2007, and there was a lot of drama around that year, so A Race Like No Other by Liz Robbins, it's available down below, or sorry, shoe two, book two is called Shoe Dog, a memoir on the founder of Nike, so it's a memoir by Phil Knight, who is the founder of Nike, and with all the news about Nike this year, I must say this book, Shoe Dog, a memoir on the founder of Nike, really put into a little better context of the history of Nike, the founding of Nike, the battles that Phil Knight went through to start Nike back in the 70s, yeah, late 60s, early 70s, so he highlights Bill Bowerman, of course, Steve Prefontaine, and really goes into, it's actually also, if you enjoy business and entrepreneurship, it's a great book on those two topics as well, so I learned so much about the shoe industry, the running shoe industry, and business, and then running history as a whole, yeah, I'll leave it at that, I enjoyed it a lot, so Shoe Dog, a memoir on the founder of Nike, last but not least, oh my goodness, how bad do you want it by Matt Fitzgerald, okay? It's a book about the mental strategies of endurance sports, so he highlights runners, cyclists, and then triathletes in this book, also actually also rowers in one of the chapters, kind of interesting, but it basically breaks down some of the mental side of how we can be tougher when it comes to being, yeah, tougher in our racing, especially, and our training, but especially our racing, and he gives some tips, tricks, and strategies on how to become a little bit of a tougher athlete, and it was eye-opening, it was so eye-opening, and it was pretty dense, kind of a little scientific as well, and so I'm not as strong in the sciences, I will go back and listen to this book, How Bad Do You Want It by Matt Fitzgerald in 2020, because it was that well, yeah, and it actually, one of my former teammates was interviewed for the book, so really, really fascinating topic if you are interested in learning about how to work on your mental toughness, all right? Here you go, How Bad Do You Want It by Matt Fitzgerald, again, it's available down below. Those three are all audio books as well.  Bada bing, bada boom, can't wait to read your answers to the question of the day down in the comments. Thanks for being here for video number two, publishing today onward and upward. All right, we'll toss it back to you a couple of the blogs on the right and the left from the past week about the top running gear, top running shoes of 2019. A lot of people are watching those, so thank you so much. Oh, you guys are the best. See beauty, work hard, and love each other. See you tomorrow.


So as I'm always open about my business I get a lot of questions about taxes and accounting and how we're set up So I figured I'd do this video so I can quickly respond to those questions with how we're set up and how we're structured as of May of 2018 which I don't forget what day it is doesn't matter May of 2018 and we've been this way Actually now this is our 15th year in business and this is the 15th year that we have still been an S corp Now I'm not going to get into an entire debate about the finer points of this because I'm just not that knowledgeable about it I hired a good accountant so my first advice to you hire a good accountant find someone you trust find someone who's really passionate about Accounting understands the laws and this is specifically a business accountant not just a tax preparer. There is a difference so you want a proper business accountant who has experience with business and It's the same as the guy who fixing your computer comparison versus the corporate enterprise Development company very different. So there's differences in systems for the people who just do computer repair and the people who understand Servers networking and enterprise level stuff. There's different levels of accountants and taxes are complicated Taxes are confusing and anyone who has a systems background It is used to very Process-oriented things will probably find yourself infuriated if you actually spend a lot of time reading the tax code It's it's like legacy system stacked on top of each other with a lot of weird stuff in between So I'll give you this short of it though. We are an escort now It's important to have a separate corp And it's important to have a separate setup and the reason why is you don't want your Money flowing through from your personal and then have to separate it all out I've known people personally have gotten in trouble for this I've even seen other youtubers who've talked about how they got themselves in trouble because they got big on YouTube And they never separated a personal versus business and now they have a tax mess on their hands has sorted all out of what was a business expense What was a personal expense? Having everything as a separate entity with separate bank accounts is the first Clear separation so there's never any confusion about that and the last thing you ever want is to be Have a confused IRS agent at your door They will sort out confusion and it usually can cost you a lot of money and having an attorney Represent you also cost a lot of money. Nobody wins. Well, there is is gonna win and you're gonna lose a lot of money So make sure you set things up properly Brief advantages of s corporations a limited liability for management shareholders I own this company. So I am considered a shoulder Unlimited number of management no-state residency requirements So these are just some structural things of how you can set this up and how you refer to us as officers of the company as Entitled officers whether you have a chief financial officer or or that and even when I was starting out small because I was a essentially work consultancy business and when you look at it from in terms of Structure of the company or how it works people ask us to do stuff Well, there's not always a lot of hardware involved There's most from money comes from typing on keyboards and setting up firewalls and things like that Especially we a lot of times we're just configuring customer provided equipment for deals They got with the stuff so the equipment doesn't even always pass through us. We're just doing the labor portion of it That being said S corp offered some advantages in terms of the way that is taxed And this is just one of those little nuances and it may not be the same for you And it may be especially if you're outside the US there's other entities You need to explore but that's why I start with get a good accountant and you can start to understand these things So a few things that we do are our s corp owns vehicles our s corp owns lots of Assets that depreciate which are good things to have in terms of s corp because you can write those things off It's not good if you are trying to use it for investments and appreciating assets at least according to this article once again That's as much as I'm gonna say about it is go find a good accountant read a lot of this stuff So at least you're on the same terminology page is them and then have them a decision once you understand your business model of how you want to do things and Then make a go of it from there All right So we're gonna get off this topic But I wanted to let you know I am an s corp These are some of the reasons because I've said this before and immediately someone says why not why didn't she switch to an LLC? Because that's what I want to do. I'm really not the most qualified person to ask based on the conversation I have with my accountant s corp was what works for me and it's been working for me for 15 years We are profitable and things are working Now here's what I really wanted to cover today Was the question comes up a lot about how we do our accounting for not using quick books or you're using some open source product And does it work and blah blah blah? Yes, it actually works quite well. We've been using a couple tools for a while So specific tool that I'm talking about here is it software called came my money.  You can get this at camemymoney.org. It's free. It's under genie public license and It's available in windows. So you can use this in windows or linux It's actually works really really well for managing ledgers now We do not do any invoicing from this We only use it to manage our ledgers and let's describe a little bit that I know some of this is blurred out But we'll cover kind of what the ledger is and how we do the accounting each month and how we lost $8,000 in April of 2018 so I've done a whole tutorial on the functional ways that this program works So you can grab QIFs from your bank account QIF I think it's quick and quick and interchange format or something It's a downloadable format that most of your bank support, but this also supports CSV So if however, you're getting your accounting data We do all of our accounting data in real time off of what they would kind of call as a cash basis But it's not actual cash money. It's just the term they use there's cash accounting in a cruel accounting For this talk and what I'm talking about this part here. We do cash accounting The shortest way to explain it is Cash accounting is when you recognize the revenue when it came into you So I build you $100. You paid me $100. I recognize that $100 when I was paid not when I sent the bill A cruel accounting is I have $100 because I sent you a bill for $100. Well, you don't actually have it until The bills paid So this is just something think about of how you do the accounting And when you get to the be at the larger scale of accounting You almost have to go a cruel accounting and I'm not gonna get to the finer details of that But those are two terms you may want to read so you understand a little bit how that works Do some googling just plenty of information out there about it And talk to your accountant about the final decision how you set things up once again differing to the count and sound not So let's go over income expenses. So when we look at our income of How we got the money in so once we sort all these things out into categories this software smart It remembers previous categories for things for example Cell phone payments are made to the same company every month The building lease goes to the same person every month Lecture can gas goes the same place every month insurance goes the same place every month So it actually auto categorizes lots of things QuickBooks does this very well as to I'm not a QuickBooks user, but you can do this in QuickBooks that being said what your P&L is each month is All the money in all the money out and then summarized So we're just running from the top on down and like I said the numbers aren't actually all that relevant Maybe you're curious about how much I make so the relevant net aspect, but they're not relevant in terms of this talk here This is just to kind of show you the structure of how we do it and how we do it in this piece of software to understand our position Now my a cruel position I could say if I looked at invoice engine right now is people owe me X dollars This is about what dollars I have in the bank and what my cash position change was so here's all the different income categories We have I have the generic Deposits versus express checkout payment versus interest versus PayPal here these categories and this one's going away This was credit card. We just got rid of our credit card company Last month, but these are all final deposits.  I was paying effectively 4 and a half percent you argue with them and this happened before they reduced the bill and Then they finally add these little fees and stuff like that And they're kind of a shady business as far as I'm concerned PayPal's always very upfront. We charge this right now I know I can save money if I use some of these that are larger credit card processors But the reason we don't bother is because it's actually like a very small amount of money because this is for our in-store Charges our in-store charges are very small. We just don't do that much retail anymore nature of retails kind of Faded away in this area quite a bit. Most of the retail stores that had computers around here closed This there's not as many people with General computer stuff and a margin for selling computers directly is really really small So we got out of that all together So then the deposits are all the checks written to us that come in from everywhere or a CH's and generally how clients pay And this also a subcategory of this but I don't break it out separately because there's not really a need to is Income I receive from Google for ad revenue we get from the YouTube channel here express checkout payment That's the PayPal name for money coming in That is from online bill pay So that's another payment source that we have this is just you know when we do out-of-state work or remote work And people use our online payment system That works very well and we separate that out interest is interest earned on money that sits in Some of the other bank accounts because if you have a pile of money put it in somewhere that earns interest or Earns some type of return on investment rather than just leaving your checking account So we have to account for that money that comes in there And there's payment pay about here So these are the summaries of the total income that comes into the company And like I said, this is all built off those QIF files and the bank statements import so we import from our local bank and we import from a PayPal bank and Shuffle up all the incomes now here comes all the expenses This is all the expenses that go out each month first one is that you see here is shareholder loan payment And you may have heard me say that I own the company I do and a shareholder loan payment is because I'm the shareholder and you may loan This is part of the reason it's important to have your personal versus your Business separated is you may loan your company money and then you can then set an interest rate and be the person who loaned the money Now taking loans This is a very small amount of money that goes back and forth that you know, I know it's blurred but You can Give your company money and then pull the money back out based on an interest rate that you set in agreements As you actually have to sign with yourself essentially I won't get into the finer details of it Make sure you have a good accountant who can structure all this properly for you But this is one of the ways that you loan the company money and then you may want the company To pay you back that money. They owed you sometimes they call it a promissory note I just have a category called share a loan payment. So it pays me back money I loaned it from long ago in very small amounts So that can also be loan payments. You've got from banks and things like that I'm a better person to loan money to my company than I think a bank So it's just thrown it out there. Then you have all those little fees that get attached to everything Bank fees credit card fees PayPal attaches the fee for Transactional fees and percentages and my accountant isn't free So there's an accounting cost that go in there to my business and that's what that's the category for those So I understand where all my fees are Advertising fees are what they are, you know when we buy ads on paid buy iPads on Facebook or wherever we buy ads from Google Those are all advertising fees I've wondered if hot sauce should go under there, but I'm not sure yet Building expenses things that the building needs we do lease the building But we still are responsible for it based on our lease for things we need if something You know need this need that we bought a lot of stuff There was a whole lot of this building expense when we built out this new location But those are where those categories go building lease That's a fixed amount every month. We write the landlord to check. So that's where that goes Sell phones that the company owns that's where that payment is Now this is where the variable costs are and now I didn't break these out But sometimes you'll see P&L's broke out to variable costs and then your fixed costs So you have your operating costs and then you have your direct job costs is how I refer to them I don't break I break them out a little bit We do job costing on a job-by-job basis to make sure are profitable This is like the overall cash Christian the company and how we look at it each month So direct job costs are parts that went out and I Generically called it computer parts because it's never changed the name of the ledger But it's really anything it's network equipment It's anything that was needed for that job or jobs in general go in the computer parts contractors We use contractors from time to time. So whether we use a subcontractor for some little aspect of something we don't do That could even include things like we built a website. They needed some special copy written from someone So we hired someone to write that copy. That is a contractor used to write copy On a job. So it's a direct job cost. It's gonna be a part of my variable cost so we sum those up so we kind of understand where things are for the jobs that are going and They kind of relate to You can break them on in percentages This is for when you're doing some big picture thinking about where your position of the company is You look at your total income and your direct job costs and you try to figure out Okay, this is how much percentage I'm making on this and then you look at your operating expenses But in terms of that I'm gonna jump all the way down to payroll. You also have to figure out how much you spend on employees Which also kind of go into that direct job cost depending on the category of the employee and then you then it gets even finer detail Of is that an administrative employee who does administrative things in your office? Or is it a employee who directly works on client stuff? So then you can see how this can be really fine Detailed when you need it to be For most part I don't need it to be Other than when we're doing projections and really thinking about things in a big picture of where the company is going and overall profitability of it You may have noticed that there is food and entertainment and food for clients One is expenseable at one rate. One's expenseable at the other rate. I don't know what those rates are My accountant does so I break them out into categories because ultimately this and the transactions related to it get handed to the accountant So they understand What category things go in? All luxury can gas those are valid expenses. Uh, it's got to pay to keep the lights on Insurance that's an important thing Please have liability insurance on your company. That's important But there's also things like because the company owns vehicles that pays for the insurance on those vehicles So that all gets lumped into that category Office supplies well, we don't buy a lot of those but when you do they go in that category You know paper things like that payroll is going to be at least when a service-based company Your biggest expense because the biggest asset you have in the company is really good staff But to have a good asset, they're not cheap. Um, and I'm fine with that. So that's part of Um, the payroll is you know, all the people I pay that do the stuff So that's going to be percentage wise That always is one of the biggest expenses you have because mostly what we do people call in They had a problem fixed. I have people on staff that fix those problems Most of my money is not spent on the software that we use so people You'll get real fine and know I know about this or that and we start breaking out the annual costs of things like the software You use much smaller number than the payroll it takes for Paying people to sit in front of computers to use all that software I bought That's where you're when you grow your business and you have a bunch of people That is always where your expenses come in people Smart people are expensive. Um, that's just part of it and a big thing that goes on I'd break out taxes, but taxes are kind of a result of payroll just so you know, so Based on the effective tax rates if you pay someone 80 90 thousand dollars a year You don't directly pay them 80 90 thousand dollars a year You pay them whatever that is less the taxes and in a separate category is you write the chat taxes somewhere else So it's not like I give them the money and then they pay the taxes That's what a contractor does though when you're doing payroll you end up writing two checks you write the Check for the amount of the payroll less whatever the taxes are By the way, I use my accountant to do all the payroll and that's important because The accounting payroll is there's a lot of nuances to taxes that I don't understand that I don't want to Waste my time trying to understand I have an accountant that does understand that when I Give people this much money this much taxes are owed based on the law changes And when the law changed again here in 2018 It actually affected what the payroll checks were very slightly based on the new tax laws You need someone keeping up with that or you need software that does some payroll software or payroll companies will do that for you My accountant is full service. They do my accounting and they do my payroll They actually write all the checks for my staff and the nice thing is the accountant lives down the street So in passing they just drop the checks off here really convenient. They actually write them for me and have them all filled out by the way my accountant also writes my tax checks for me So the taxes that go out they have authorization to write these checks with my signature And they just send me copies of them and makes it really easy to do the accounting Then we have travel expenses, which you know the general travel expenses for parking and things like that those go into a category So my staff does not if they go out to detroit with one of our company vehicles They park it somewhere. They also get to expense that back to the company and it's a valid write-off Then you have web hosting inet which is my generic catch-all for Things like solar winds that we pay and other software expenses comcast cable and all those things that take kind of Functionally take to keep the business running and like I said doesn't cost much as payroll now when you sum all this up This is how we understand our cash position at the end of each month Now the way it worked out we took in quite a bit of money And we put out a little bit more money than we took in because of that big project Some of you that follow the channel seen the video on there. So we got a deposit for that We did not get all of the payment It is a very large sum of money that we have invoiced to them that is not paid yet It actually some of it actually is paid because it's May and this is April So a bunch of money landed in the account the other day, but as of april We actually lost $8,000. So and we didn't lose it per se We know exactly where it went because we're doing our accounting here But these are the things you have to think about in business Now you can have a business line of credit or you can keep some cash in a bank for us We keep cash in a bank. So doing a loss at the end of a single month of $8,000 means our cash position changed to $8,000 less than it was the previous month. So When your cash position changes that just means there's that much less in the bank account That does not mean we went negative. That just means there's that much less from what there was So this is how you track that information This is an important aspect of accounting is make sure you track that from month to month and see where it is So previous months we'd actually made money and put A positive cash position than other times it's a negative now That is the ability that you need to have in your company Like I said, you can do this with a line of credit or by keeping cash in a bank So you can control the float for one client's pay you or on the wonderful chance that And i'm saying that ironically of course or with air quotes wonderful times when clients go, you know I just don't have that $10,000 for that invoice I'm know I said I'd pay it on the 15th. I'm gonna pay it on the next 15th So at any given time people owe us a certain amount of money and Occasionally things happen You have to be very much on it. We're very much on the collection side of things all the time Well, I'm not Marvin is and we're making sure that all the money coming in in being billed Is being collected But these are those those things that come up in business and this also changes your cash position because you Uh thought you were getting paid and you didn't this is also why we work everything on a cash basis In terms of the instead of a cruel basis because if I look at from a cruel basis and I invoiced out all these jobs That numbers weigh the other way, but actually there is indeed The end of april less money in the bank account than there was at the beginning of april Because we had a cash position move of less because of the money went out And of course that's what's really important because you got to know where your cash position At all time to make sure if someone says hey, can you do this under project? You know, you got to buy parts. I know I got to make payroll I can look at the bank account. I can understand my cash position to move over to that So these are the things you think about and a few people have asked me How long does it take me to do this accounting and how do I do it in terms of when I use came my money For all the transactions all the bank accounts all these fees that add up to all these transactions here I spend Two hours a month on it. That's it. It really doesn't take much So once a month, I do this profit and loss or income and expense Look at the total income coming company and Sum it up. Now the fun thing is I love statistics and data I've been using this software for years. I think since 2011 or 12 So that gives me seven eight years of data in here to look at trends Look at month to month what months overall over the last five years that we see more money in And that's kind of fun part about this once you get all this in the system You then can play with the data to look at it in different ways to make predictions or make understandings of things So this is just an overview of people who always ask me how do you do the accounting? How do you know you lost money? What does it mean you lost money or you're going out of business? What does it mean you made money? And this is the tool by which I do it and because I do this monthly the year end one is actually really simple Once I do december's I just summarize the year change the date range. It's already done for the year So my end of year accounting becomes very very simple because I do it once a month every month and make sure everything matches Then once I do december Done. I have my year end. I know the overall position of the company. Did we make money? Did we lose money? Where are we at with things? And like I said, this is Important it's important understand and from a business owner's perspective You want to know where your money's at you want to know where it's going You want to make sure you have money in a bank so you can keep making payroll But also predict those trends if you start losing month to month to month you better think about what you're doing Do you have too many expenses or your contract or expenses too high? And this is where I'm not going to lay it all out because I gotta blur out more stuff at it that You can look at your money over time and see where your money's coming from and see what the trends are for it um Real side note too is people may want to know like how much money I make and things like that I'm not going to disclose exactly how much money I make but I will disclose Um, how you have to pay yourself once you have an escort It is important that once again the bank this company is not a piggy bank for you You just pulled money in and out randomly I do get a payroll So all money that comes into this company and all the money that goes out of this company is documented We use nothing but credit cards to pay things for the company This means we don't have to keep all these receipts laying everywhere receipts Just go in a box or most of our digital now Go into an email thing called receipts. I got a folder for it. I just dump everything in there But I don't have to look at receipts and key all this stuff in I use a credit card For each one for paypal and for that so that lists the name of the place I went And then that's how these categories get here I'm not having people submit a bunch of personal expense reports I even give the staff company cards to pay for things So everything gets documented the same thing with all the money is out You can't just go make a withdrawal because iris to go. Where'd you do with that money? So all the money coming out gets documented with checks or gets documented on a payroll sheet So all money is out is accounted for which is very important because if you want to have trouble with iris Have a bunch of unaccounted for money that came in that you don't know where it went and money that went out that you're like I just needed some That is that it will get you in trouble. I've had friends that have had so much trouble with this stuff Just don't just do everything in a very documented way use credit cards for everything Don't pull a bunch of cash out of the bank and distribute it You will just find yourself in all kinds of trouble and probably owning a bunch of money and taxes because you couldn't properly account for A legitimate expense because you decided to use cash And that also raises red flags of just seeming suspicious at least here in america I don't know how it works elsewhere, but document everything So that's my quick overview of accounting and what we do here just Um and answer the question a lot of times of well, how do you handle the accounting? 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It is no secret that men frequently visit the coffee house for more than a cup of coffee. In our coffee house, they often go to talk and to listen to the wise shake, who from time to time retells the stories of Nasreddin Hocha. Here is the book with the right ideas. Reading is good for everyone. Listen to what it says. Right here. The ideal state must own everything, business and industry and farms. Also it must control all art and science. Practices that divide people, like free enterprise and religion and different political parties, would be forbidden. Everybody would be free to serve the all-powerful state and share in the blessings of its power. That is nonsense. Did you say nonsense? Yes, I said nonsense. Amid, why would a radical system like this help our country? Because that's just what it says. Right here, in the book of my party. Your vision, Amid, is based on a little bit of knowledge. What you do not have to guide your actions is long-term experience. By feeling one leg of a strange beast, could you describe the whole animal? An animal, Efendi? Yes, Burhan. I was remembering something Nasreddin Hocha once taught long ago. Sit down, Amid. Listen to this story called A Lesson from the Hocha and try to understand how it might apply to you. When Nasreddin Hocha was teaching in his village, three of the older boys decided that they needed no more schooling and much more time to enjoy themselves, which made life miserable for the villagers.  Terrible. It happened. It's my wife, my good wife. She's hung herself. Look at her. Help someone. Oh, help. This is terrible. Oh, my wife. Delighted, the patient villagers decided the boys had gone too far and must be punished, but the Hocha had other advice. I really believe the trouble with these boys is that their little bit of learning has gone to their heads. Clearly they think themselves far wiser than their elders. They must be taught that true wisdom comes from experience. The villagers wondered how this could be done, and the Hocha had an answer.  My goodness. Next day in the village square, Nasreddin made a strange bargain with the three blindfolded boys. You feel you are clever enough to obey no one and do just as you please. Very well. Let us test your wisdom by bringing a strange animal here before you. Each of you may feel it with your hands. Then, if you can describe the whole animal clearly, you are free to play your days away, but if you cannot, you must go to work helping your fathers. Of course, the boys were very confident of their own abilities. And as soon as they had agreed, the Hocha decided the lesson could begin. Nasreddin and the villagers looked on. The first boy groped his way forward and finally clasped his arms about a thick leg. I know. The animal is tall and round, like a tree. When the second boy found the animal, his hands reached out and took its measure. This is easy. The animal is broad and flat like a wall. The largest boy was just starting forward when something round and twisting brushed against him. It's a snake. This animal is a big snake, Hocha.  And with that, Nasreddin signaled for the animal to leave.  The first insisted that the animal must be tall and round. The next knew it was broad and flat, while the biggest boy was positive that the animal must be like a snake. And the biggest boy, who spoke loudest, won the argument. Like all the villagers, the Hocha was well satisfied. Now see how wrong you were?  But you were quite ready to say what it would look like even though you had felt only part of this animal. Remember, true knowledge and wisdom come only after long experience. Now go home. You have had your lesson from the Hocha. The lesson of the Hocha still applies to us all, Harmead. So be careful about putting your faith in the radical new ideas which you read in one or two books. There are countless others. Don't forget, which recommend the wisdom of long experience. Perhaps before you decide, you would do well to read all the facts. That is what the Hocha taught, and it makes good sense.