How the Bank works to make money?

[sindikat]

Banks earn a lot from the sale of collateral and business lending. I for example know that many banks have income even from loans on 1+ day. Also, the income of banks depends on the country in which they are located. In poor countries, credit rates are higher and the population is poor, so they are more likely to use credit.

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[Scavagers]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

The only thing I know is from lending money to customers with a higher rate than the amount of borrowed money by customer. That is the primary source of profit of banks. One thing I have in mind is also the fee that they require when you deposit/claim money.You pay for the security of it and I think they somehow make money out of it.

[Experia]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

banks are putting the deposits of their clients in stock market they do not rely on the process of the loans, they also earn profit on making some money due to the ATM machines every withrawal you made there was a charge on your acct and I guess it is enough to make money to pay their employees.

[Dudeperfect]

Money is a powerful tool that is self-sufficient to grow rapidly but one should employ the money in a way that will give the highest gains. Most of us are concerned about earning money but we ignore to leverage the potential of money itself as an instrument. Banks do the same and share a little percentage of profit with the owners of money. On the other hand, banks also provide some other services to create more money and in this way we see banks getting bigger and bigger day by day.

[alyssa85]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

They make money with the difference between the interest paid to depositors and the interest paid to lenders.

So if they pay people 0.5% on their savings account, but relend that money out to borrowers at 5%, they make 4.5% on the money.

So basically their model is using other people's money to lend at a profit.

[celtic99]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

Banks prey on the common man.  They charge ridiculous overdraft fees and other nonsense.  They hand out loans with terrible rates, they give out mortgages to unqualified people and end up taking the house in the end.  Banks have endless ways to make money, they are predatory.

[laravuemaster]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

Banks are getting more profit from those who are placing their money and setting it for time deposit but if people will prefer to invest on cryptocurrency then they will have less clients and it is one of the reason their business can actually die in the future.

[BillCoin]

They base their profits on people who stores their funds in the bank unlike bitcoin, people who stores money in the bank's system actually let the bank holds their funds, and they can simply do whatever they want with their customers funds, even if involves investing people's money even though they don't have more money to cover that.

Not only that, they receive money from loaning money to people( even though most of the money that they loan to people they don't really own), and they receive tons of money from covering interests.
They work with credit card companies and they get interest % for processing payments.

[Slash61]

There are so many ways in which banks earn a lot of income, interest income comes from borrowing customers in loans, large interest income depends on the amount of loans disbursed and the interest rate set, the role of the bank as an intermediary institution that collects funds from the community and channeling funds in the form of credit to the business sector or individuals in need, and many more that can be profitable for my bank only illustrate small samples, and others have answered more.

[solarion]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

I am not sure how this thread is involved in bitcoin related economy. This section meant to discuss the problems and updates happen on the bitcoin economy. If you think is useful write added information about bitcoin also to keep it visible.

Else you can also able to lock the thread to stop the spamming from the other people. There is already many threads being used to make their spam replies.

[yoseph]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

Not at all banks also invests the money that their customers save at their banks in other assets and things that bring them money, that's why they are able to get a lot of money from their business workings.

[jak3]

Yes, Bank makes a huge amount of money from interest.  They have so many ways to take money from you and they are working on them for over 500 years so it's really not possible to break the chain. Old people believe that banks are the safest place in the world and whenever they get an asset or investment they're going to put the money in the bank account so that how banks keep getting money from you.  In addition to all of this banks take your money and give it to someone else so Bank can make money from it and you will get your own money you have to pay tax for it.

[adzino]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

Most of the money comes in through the loan. When someone deposits money in a bank for fixed term, their money becomes available to be lent to other people. When people takes those loan from bank, they will have to pay back with interest. This interest is their main flow of making money. They also get money from their various service charges too. Don't forget the amount of users they have who uses creditcards and have to pay back with interest.

[jaysabi]

You know, you probably don't even have to look further than a wikipedia article on banking to get this answer.  It's not a real topic of discussion, because the answer is known and there's not a lot to add.

Thus I won't even answer the question, but I'd add that the crypto world has yet to devise a system that could actually compete with banking, nor has banking adopted crypto.  I kind of wonder why the latter is true, but my guess is that it might have to do with anonymity and irreversibly.  I just don't know.  

But as to the former, the only thing I've seen on a large scale was Trendon Shavers and his failed attempt at a banking structure that turned out to be a gigantic ponzi scheme.  It really would be nice if someone figured out a successful model for paying interest on bitcoin deposits--and I'm not talking about POS coins.  That's different and I don't think that's going to work.  If no one uses those coins for anything and just keeps them all in a wallet....that's not a model for anything useful.

My take is because crypto doesn't actually do anything useful in the real world as far as banking is concerned. The hype for how much crypto is going to change the world is quite overblown. The use cases for crypto are thin. When it comes down to payments, crypto is a marginal improvement in very limited aspects of a transaction. In virtually every case, cash (and electronic cash) is far superior. And aside from crypto, people think blockchain will change the banking industry but no one is able to give a real good use case for it. My take on that is because there is none. Blockchain is a solution to a problem nobody needs solved because the centralized system works fine. Blockchain doesn't improve on it.

[FrueGreads]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

Well I never really thought about it, but I think that the objective. They charge interest on the loans, and they probably can also make some money with the fees they charge, that are not that small if you think about it. Google doesn't really charge us for using their email, and keeping our data on their servers, so  guess banks wouldn't need to do it as well, so those fees are probably a lot of profit for them as well.

I'm not sure if they can also make some money with inflation. They print money that becomes less valuable over time, so maybe they can profit from that as well.

[ganlianshifu1]

If you put money in the bank, it is equivalent to giving the bank a financing platform and it is a cheaper platform.
After the financing, the bank lends to the lender with high interest. This spread is the source of profits.

[stimliall]

1. Loan: The loan interest rate is always higher than the deposit interest rate.
2. Various fees
3. Other spreads: If the interest rate difference of forward foreign exchange transactions, the bank can not serve you, when you use forward foreign exchange trading to avoid risks, it also has to earn points.
4. Investment: So taking deposits is a big thing for every bank. It is good to invest as a capital.

[romero121]

With the money deposited by people from their hard work banks make several plans and investments taking the best profit from. Their major financial growth is through the lending which is highly secured with the collateral system. So they get from a person providing 1%interest providing to the one in need getting 10% interest.

[Blackrain13]

How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?

   Banks has many ways to gather and make money to pay their employees and to support their business operations. They rolling the interest they got from their customer who put money in their banks and lend them again to other people to make money for them. Their way of making money was doubled. They lend money to other people from the interest they got also from their   customer. They invest and earn from their customer itself. Banks are very knowledgeable in terms of financial investment.

[Jamescur]

The main profit point of the bank lies in the difference between the deposit and loan interest rates. In addition, there are a small number of profit sources and intermediate fees, that is, the various fees charged by the bank using his facilities, communications, professional processing, etc.