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Author Topic: How the Bank works to make money?  (Read 1312 times)
Charlessy
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September 06, 2018, 07:48:23 AM
 #221

One of the major source bank make money is interest gotten from loan, Banks also make money massively from the unnecessary charges on their costumer  especially on domiciliary account.
Bank as a financial institution is a place to store and deposit, then the existing funds are loaned to customers with a greater interest and the difference in interest is the bank's profit. Then there is income from transfer transactions between customers or between banks. Benefits are used for operational costs and paying employees. In addition there are also banks that rent deposit boxes for storage of valuables.
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September 06, 2018, 08:23:33 AM
 #222

The banking sector can said to be the intermediary between  lenders and borrowers.
The banks receive  funds from lenders at a lower interest rate.... let's say 0.5% per annum  and they lend the funds to borrowers at a high interest rate if maybe 15-30.% per annum .
Thats how they make their money.
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September 07, 2018, 02:32:55 AM
 #223

I know that some banks have forex trader on their behalf doing transactions and it is certainly with their transactions with them that they carry out these transactions. And I heard that they make big profits and some losses too.
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September 08, 2018, 02:02:21 AM
 #224

The trades range from megadeals to simple stock trades. Investment banks are designed to finance or facilitate trade and investment on a large scale. But that is a simple look at how investment banks make money.
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September 08, 2018, 03:39:09 AM
 #225

The bank's work, which is to raise funds large enough to attract customers, provide loans and other service products, will only benefit from the difference in interest earned from these products.
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September 08, 2018, 10:42:20 AM
 #226

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 have a ways to get their own money to paid their employrees and business operational by getting interest in the people who withdraw cash in their bank.They get little money for each cash you get.Imagine, how many people go in the bank every and the bank earn.
strideynet
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September 09, 2018, 04:04:17 PM
 #227

money is like a commodity, buy it cheaper in the Central Bank and sell it more expensive

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September 11, 2018, 09:43:21 AM
 #228

The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
That "few people" is called the government. I don't see anything mysterious about that. People just like to think it is. There are other reasons as to why the government have to print more money. One is to replace the old ones that have been worn out. We are using money on a day-to-day basis. It's just paper and paper can break easily. Second one is the economy is actually growing and we need more money printed. Transactions aren't always done digitally and most transactions are still done with paper money.

Just like other things, printing a little bit more of money isn't bad at all and doesn't result to inflation. But too much of something is always bad. Too much printing of money will result to inflation which affects the economy of the whole country and its the people who experience such consequences the most.
The governments not printing any money only the central Banks from the respective country is printing all the money but which is not controlled by their governments as per the articles I have read on the internet.

Did you remeber the story of Abraham Lincoln assasination? I studied that he was killed by that few people because he want to release money by the governments not by any banks.
Banks give you loan and take interest on it which is the one way they get profit, secondly they make money in different transactions on different currencies. Governments are making money through these banks and benefiting their economies that are also the reason why they are opposing the Bitcoin and other cryptocurrencies not to bring a sudden change in their countries but they should learn from those countries where the Bitcoin has spread without any disasters.

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UchihaRukawa
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September 11, 2018, 09:50:57 AM
 #229

I know that they are making money by using our money and investing it on some business, making loans and making interests, this way they earn a lot, I dont think that banks are doing something illegal like spending our money for their own good, we are paying them to hold our money for us and they give as a percentage of what they earn in doing the things I mentioned earlier. Im not against banks, but I am not for it as well.

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September 11, 2018, 10:28:08 AM
 #230

In my opinion, the bank borrows your money and pays you interest every month. They take the money you bring to invest or bring someone to need money for them to borrow and the bank earns interest every month is higher than the interest sent to you. The bank does not lose anything. Something funny but it's true.
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September 11, 2018, 11:25:47 AM
 #231

The Bank will conduct exchanges between parties, acting as intermediaries. The bank will gain interest when the exchange is successful.
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September 11, 2018, 11:31:42 AM
 #232

The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
That "few people" is called the government. I don't see anything mysterious about that. People just like to think it is. There are other reasons as to why the government have to print more money. One is to replace the old ones that have been worn out. We are using money on a day-to-day basis. It's just paper and paper can break easily. Second one is the economy is actually growing and we need more money printed. Transactions aren't always done digitally and most transactions are still done with paper money.

Just like other things, printing a little bit more of money isn't bad at all and doesn't result to inflation. But too much of something is always bad. Too much printing of money will result to inflation which affects the economy of the whole country and its the people who experience such consequences the most.
The governments not printing any money only the central Banks from the respective country is printing all the money but which is not controlled by their governments as per the articles I have read on the internet.

Did you remeber the story of Abraham Lincoln assasination? I studied that he was killed by that few people because he want to release money by the governments not by any banks.
Banks give you loan and take interest on it which is the one way they get profit, secondly they make money in different transactions on different currencies. Governments are making money through these banks and benefiting their economies that are also the reason why they are opposing the Bitcoin and other cryptocurrencies not to bring a sudden change in their countries but they should learn from those countries where the Bitcoin has spread without any disasters.

The creation of depth is the main way banks make money, I agree with that. And that is also the biggest threat. Just google the term “fractional reserve banking system”. The banks lend out more money that they have. If all people wanted to cash iut their bank accounts then the banks would be closing down. When you research the “Great Depression” you will notice that this has already happened in the past. And as always, history will repeat itself. Therefore crypto is your safest option to store money in the long run.

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Phil315
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September 11, 2018, 11:40:16 AM
 #233

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?
Majority of the banks make money through dubious means more that legit means. It is not just the legal operational transaction fees they collect. They also help corrupt politicians to ferry money away.
Candycrush22
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September 11, 2018, 11:48:32 AM
 #234

there are many ways for banks to make money, one of that is lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own and pay interest on deposits, CDs, and short-term borrowings. The difference is known as the "spread," or the net interest income, and when that net interest income is divided by the bank's earning assets, it is known as the net interest margin.
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September 11, 2018, 11:50:23 AM
 #235

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?
Of course they make money through your money, if you put your money in the bank then banks will use it to operate their business. Interest rates is the main source of banks but larger banks already diversified they're asset so they can have more source of income. Banks are very wise in making money, imagine the interest that you will get by just puttin your $1M while they make thousands of profit because of your money.

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September 11, 2018, 01:54:17 PM
 #236

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. they have a lots of way to make profit, and one of this are loan programs such as in housing loan, car loan, then I think pawning is also includes to their earnings, then in some other ways they gave interest also for the maintaining balance savings to their clients too. That's all I know, that's it!

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matthew1981
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September 11, 2018, 02:43:37 PM
 #237

Incomes from banks comes from interest. They lend the money to other costumers to make interest. Banks just don't store your money, they use this to invest and make profit in return. This is how banks work to make money.
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September 11, 2018, 11:20:02 PM
 #238

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?
Many people think that banks make money only by loaning money to other banks, people or businesses, but that is not accurate many banks also participate in different kind of investments, many banks participate in the stock market and in the bonds market and that is where they make the most money because many banks are very well connected and know before hand many of the things that are going to happen in the market because of their connections and they extract money from people that way.


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September 11, 2018, 11:40:33 PM
 #239

Majority of their income comes from loans. Although this could also cause them a lot if their client was unable to pay. That's why they cease or take properties equivalent to your debt.

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September 11, 2018, 11:46:34 PM
 #240

With a concept they call fractional reserve banking, banks practically create loans from money they do not have, debt out of thing air, they can make 100$ loans from deposit of 1$ you make and s charge interest on it
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