Why the banks dont give free money? Why they loan it?

[MWesterweele]

This question made me laugh.Banks is also a from of business they have employees,workers,executive and any other people just like a normal business.Just like any other business,a boss must pay a salary for each employees and the money they offer for  loan is the money which they pay for salary of employees.Thats why bank cannot just throw money .

[Hatuferu]

This question made me laugh.Banks is also a from of business they have employees,workers,executive and any other people just like a normal business.Just like any other business,a boss must pay a salary for each employees and the money they offer for  loan is the money which they pay for salary of employees.Thats why bank cannot just throw money .

Exactly, bank have also expenses and they don't get the  money they lend as donation from other entities, they even need to meet certain targets to have a profitable business and to pay their employees, for them focusing in loan could generate a higher income.

[Hazir]

At this point I thing everyone here would agree that we need banking services but we don't need banks.

The World Bank states there are 2.5 billion adults without a bank account - this is huge opportunity for technical innovation.
 
If wish we have serious bitcoin foundation promoting Bitcoin as solid alternative to traditional banking services.

 

[senyorito123]

This question made me laugh.Banks is also a from of business they have employees,workers,executive and any other people just like a normal business.Just like any other business,a boss must pay a salary for each employees and the money they offer for  loan is the money which they pay for salary of employees.Thats why bank cannot just throw money .

Exactly, bank have also expenses and they don't get the  money they lend as donation from other entities, they even need to meet certain targets to have a profitable business and to pay their employees, for them focusing in loan could generate a higher income.

Yes they need profit so they can sustain their business and they have employee that need to get their salary and also banks need also to pays advertise so they well be known, the reason they dont give money its because its their business business not intend to give its not charity intitution and they loan the people save moneys so they can get retureturns witb it

[Hatuferu]

This question made me laugh.Banks is also a from of business they have employees,workers,executive and any other people just like a normal business.Just like any other business,a boss must pay a salary for each employees and the money they offer for  loan is the money which they pay for salary of employees.Thats why bank cannot just throw money .

Exactly, bank have also expenses and they don't get the  money they lend as donation from other entities, they even need to meet certain targets to have a profitable business and to pay their employees, for them focusing in loan could generate a higher income.

Yes they need profit so they can sustain their business and they have employee that need to get their salary and also banks need also to pays advertise so they well be known, the reason they dont give money its because its their business business not intend to give its not charity intitution and they loan the people save moneys so they can get retureturns witb it

You hit it right, they are not a charitable institution as they are in business, and to think of business banks want huge money from their customers even charging big loan interest and hidden charges, so we should always be careful also with borrowing to a banks as we might be surprise every time we default due to big penalties.

[AlgoSwan]

Actually banks are giving free money. Banks I'm talking about central banks. And they are giving free money to commercial banks. (HINT: Negative interest rates)

[SAMKUSH]

Banks will give loans as a way to raise money for themselves on the interest charged and it has to have a going concern as a business to continue existing

[Farma]

I think they do it to make money for borrowers. I think the banks make a profit using the monthly payments so they can get a little extra money to develop the bank

[afriezalie]

Nobody wants to give free money. I think banks loan the money for their own profit. They also need operation fund to serve people. Do you think where did profit of a bank come from? It's from interest. Also banks are used to control the currency value. If they gave free money to people, the currency value would be worthless and people become lazy.

[ajun96]

Banks are just businesses and need to make money to pay employees like everyone else.

Who do you think pays for those beautiful golden parachutes that the fat cats get when the are given their walking papers, we do the users of their product.

Yeah, the banks made their money from deposits of the people because they will use it to lend the lenders in the market with an interest higher than the interest given to the depositors, its a matching business.

yeah bank also is an effort by the government or the company they also make a profit dude. so they will not give free money in vain?  but they maybe give free money to charity ? but not every time it happens and not everyone can get it

[fearlesscat10]

I wouldn't call it a scam, but robbery yes. It's the way that banks make their living but often this loans are to expensive and unfair forw their clients. Islam banks, though, give loans without interest.

TIL that Islam bank loans don't have interest.

But seriously OP, giving away free money would just make it's value plummet and we would move to some other currency / commodity that does actually have value. It's like you can't sell air because it's pretty much everywhere.

[blackmachinegun]

Nobody wants to give free money. I think banks loan the money for their own profit. They also need operation fund to serve people. Do you think where did profit of a bank come from? It's from interest. Also banks are used to control the currency value. If they gave free money to people, the currency value would be worthless and people become lazy.

yeah of course banks also have employees and they also have  a boss with need a salary and income
they are not a social institution that gives free money to people ?  they are a company so they benefit to the operation of their company

[Hatuferu]

Nobody wants to give free money. I think banks loan the money for their own profit. They also need operation fund to serve people. Do you think where did profit of a bank come from? It's from interest. Also banks are used to control the currency value. If they gave free money to people, the currency value would be worthless and people become lazy.

yeah of course banks also have employees and they also have  a boss with need a salary and income
they are not a social institution that gives free money to people ?  they are a company so they benefit to the operation of their company

One thing is certain that I know about banks, they rely heavily on lending in order to sustain the business so if they will give it for free they will close their business in no time.

[ning_chang]

Of course they are loaning cause they want a profit from it, even its long term they want a small profit.

[jiefes]

It is a question of socio-economic organization of society. In the countries of the former Soviet bloc, banks play a different role than in the western world. Islam on the other hand, generally prohibits usury. There are many nuances. Japanese for years enjoyed zero or near-zero interest rates on deposits with the idea to support the development and country. Can not be answered unequivocally.

[Hatuferu]

It is a question of socio-economic organization of society. In the countries of the former Soviet bloc, banks play a different role than in the western world. Islam on the other hand, generally prohibits usury. There are many nuances. Japanese for years enjoyed zero or near-zero interest rates on deposits with the idea to support the development and country. Can not be answered unequivocally.

But in totality, banks are profit oriented organization, they only operate because of money. They are in business of trust and they are governed by the state so they need to follow the memorandums the central banks issued from time to time, if they have loan program you can assure that the interest is justifiable in the area but some banks go shady with hidden charges and they are most likely penalize by the central bank.

[Doms]

The wouldn't be called banks if what they do is give away free money. They'd be called charitable institutions. Banks, much like other businesses, are in it for the profit, which is the end goal and main reason why we establish businesses. There is an old saying that coin is barren, and should not bear interest. Banks, obviously, don't believe in that saying.

[BitcoinSupremo]

Well thank God I don't need any big loan like a loan for the house cause I have already my house. If didn't in my country disguised interest rates can destroy the life of a person , the banks makes a lot of advertisements like you pay 2.5% interest rate for first 3 years and 0% for last 4 years, but in between as the loan for a house has a minimum of 18 years of mortgage repayment the real interest rate or the average per year is about 28%. Now this is a plain robbery if you ask me.

[BeGoods]

Banks are just businesses and need to make money to pay employees like everyone else.

Who do you think pays for those beautiful golden parachutes that the fat cats get when the are given their walking papers, we do the users of their product.

Yeah, the banks made their money from deposits of the people because they will use it to lend the lenders in the market with an interest higher than the interest given to the depositors, its a matching business.

yeah but certainly to attract new customers to come they will give gifts or free money to loyal customers and had transactions that often? so that they get a good promotion and gain new users ?  banks sometimes give gifts to its customers when they have promos

[Decoded]

Are you encouraging communism, where everything is provided? If so, please stahp.

Banks are businesses. They are built to make profit while providing a service. They are good at what they do, is all I can say.