If Banks make money out of loans then they should reward those who borrow

[Stalker22]

Yes If money doesn't existing without someone borrowing this then each person who i use credit or debt Will be rewarded by Banks.
My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.
I Understood allready that we Are all just victims of scam and that's ITS not If but when people will just say banks we don't need you If we don't get rewards.
~

Stop bullshitting.  We get that banks profit by lending money, but that dont automatically make everyone using loans or credit some kinda victim.  Borrowing can be pretty smart if you need to buy something big or invest in stuff, as long as you are responsible and make the payments on time. 

your buddy's got a mortgage to pay for his house.  Thats super common - mortgages tend to be long-term with interest lower than other loans.  Makes them relatively affordable for major purchases like a house.  If your friend keeps making those mortgage payments on schedule, eventually he will own the place.  And that can be a solid investment - he gets a roof over his head now, and later on he can sell the house for a chunk of change if he wants.

Instead of criticizing the financial system, why dont you offer some constructive solutions? How else do you suggest that young people who are starting in life build wealth and achieve their financial goals?

[oktana]

This has always been the case. You deposit your money to the bank and they use it to give out loans, and then they’ll get back interest on this loan (good amount of interest monthly), but will only give you a little percentage yearly. Merely buying the right cryptocurrency can give you gains not to mention when you actually stake it (borrow it). And if they bank owe more than they can pay, they claim bankruptcy and there goes your money. You see how the money is yours but somehow isn’t? If there was no cryptocurrency, I’d still detest the way banks operate the profit they give people who deposit… it feels better to even open a business than let them have the money.

[Faisal2202]

You have made a good choice because those who have adopted the BTC technology or any technology in terms of blockchain have known that what is the potential of cryptocurrency over banks. How banks are manipulating us and keeping us in the matrix of debt via their debating card system where they allow people easy access to money via debit cards anywhere and people in emotions (in any emotion) without thinking overuse this facility and become a victims of the debt cycle.

There are proper ways, books, and education that each individual has to learn before getting into finance, I can say for sure you did not read all of them but you still know the difference between both and that must be because you have experienced this whole journey of crypto which is full of transparency and security with lesser difficulties and documentations.

And if banks started to give money to the borrowers then from whom they will make money and the borrowers are not the only ones they used the money of, overall, IMHO I don't think we can really go out of this matrix created by banking system because it has been there for hell lot of years now that people want to trust it blindly instead of competitors.

[poodle63]

if you are talking about the increase in interest, well its increasing just for the sake of mantaining economy basically fighting inflation as well as keeping the bank from bankruptcy, I think people misunderstood how difficult sometime it is to select some people that are worth for the money and willing to pay back the money not fooling around refusing to pay their loan and mortgages. your friend are the ones that requested the loan as well as the mortgage so he should be financially responsible about it, its not about banks trying to up the interests without notice its just that you've agreed with such rule the first time you are requesting loan from banks.
otherwise if thats so wrong it will be considered breaking the law but we all know that what banks are doing increasing rate and all, aren't breaking the law at all.
things might be unfair but thats just how it is, the banks are risking money by borrowing it to you, so of course they demand interests, the ones that borrow the money should be grateful enough to be given the money and consider that as a reward.

[adaseb]

Generally if you are borrowing money, you don’t get any rewards. One reward can be they offer you a lower interest rate. However you won’t get any rewards by borrowing money.

If you keep money in the bank then they will reward you by paying you interest. Then this money they lend out and charge more interest. However depending on the bank, the savings rate is small. So most put it in a money market.

[gunhell16]

Yes If money doesn't existing without someone borrowing this then each person who i use credit or debt Will be rewarded by Banks.
My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.
I Understood allready that we Are all just victims of scam and that's ITS not If but when people will just say banks we don't need you If we don't get rewards.
Becouse when i stake crypto i get profit but banks don't give nothing so i see people wake up and fight against financial scam and Understood we Are just the victims of crimes i don't use Banks anymore and told my bank you gona share your profit with me or get Lost my face.
So i closed my bank and full crypto and Im happy so many people do the Same now becouse everybody Understood that money comes from the debt so more we take debt more money created so i should get rewards for taking debt then If not Im out of financial system not just me a lot more people becouse the system made us victims.
I told my friend tell bank that it's a scam and his victim of bank scheme so all his friends tell Same now to their Banks and flahing front of bankers binance atm debit card.
Now the Even bankers himself might Understood ship is sinking and fastest they get on crypto and btc the better changes to save themselfes becouse this system not working i told my friend before bank Takes his house burn it down or beat up so the bank Will get broken House.
That's how it is people now Understood If they been treated bad they fight back ....
It's unfair they made mortgage rates higher without notice first so we are victims and If anyone struggle financially they now Understood it's the system and we all victims ....Same goes with cars people now smashing it up cars before give to financial swimdlers

Yes people are frusturated and mad no question about that ....but how the money is created was like this....you want build factory you go the bank and borrow money so then your factory was given jobs to people and then Money went in circlation thats how most of money was created at first place.
But yeah Banks should reset all the debts and debt forgiveness otherswise our world gona get ugly

When anyone is capable or qualified to get a loan from the bank, it is certain that they will get a lot of interest from the borrower. However, if the borrower did not use the money lent to him by the bank in a good way, it appears that the bank is out of business, whether the borrower used the money for good or bad purposes.

Now, about: As for the OP's title, I think the bank can do that by giving rewards to the borrowers so that they will be more willing to borrow again when they have paid what they borrowed.

[m2017]

"If Banks make money out of loans then they should reward those who borrow" - this directly contradicts the idea of entrepreneurial banking. If the goal of banks is to earn money, then remunerating others is extremely unprofitable for them. Banks would rather reward themselves.

Yes If money doesn't existing without someone borrowing this then each person who i use credit or debt Will be rewarded by Banks.

You can't wait for this.

My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.

But your friend is a voluntary victim of a fraudulent scheme, that’s the nuance. Nobody forced him to go to the bank.

I Understood allready that we Are all just victims of scam and that's ITS not If but when people will just say banks we don't need you If we don't get rewards.

The fact of the matter is that the traditional financial system cannot exist without banks. Banks will always be needed by someone. For example, a loan to start a business. Where do these businessmen get money to start their own business? Should them lend them from you? Will you reward him for borrowing from you, as you propose to do to banks?

Becouse when i stake crypto i get profit but banks don't give nothing so i see people wake up and fight against financial scam and Understood we Are just the victims of crimes i don't use Banks anymore and told my bank you gona share your profit with me or get Lost my face.
So i closed my bank and full crypto and Im happy so many people do the Same now becouse everybody Understood that money comes from the debt so more we take debt more money created so i should get rewards for taking debt then If not Im out of financial system not just me a lot more people becouse the system made us victims.

If you don't want it, don't use it. What is the problem.

I told my friend tell bank that it's a scam and his victim of bank scheme so all his friends tell Same now to their Banks and flahing front of bankers binance atm debit card.

The funny thing is that binance is becoming a direct analogue of banks in the field of cryptocurrencies.

Now the Even bankers himself might Understood ship is sinking and fastest they get on crypto and btc the better changes to save themselfes becouse this system not working i told my friend before bank Takes his house burn it down or beat up so the bank Will get broken House.

This will already be damage to property owned by the bank if your friend does not pay off the mortgage and the house does not become his property. With all the ensuing consequences.

That's how it is people now Understood If they been treated bad they fight back ....
It's unfair they made mortgage rates higher without notice first so we are victims and If anyone struggle financially they now Understood it's the system and we all victims ....Same goes with cars people now smashing it up cars before give to financial swimdlers

When getting involved in a game according to the bank's rules, do not whine that the bank changes the rules at its own discretion.

[Gozie51]

Don't compare banks and cryptocurrency directly but you can compare banks to exchange because they are both looking to make profit. Banks generate their profit from the customer through means that is not only loan and likewise exchanges do too. But cryptocurrency is not in itself made for interest or to generate profit but for the ease of financial transactions or option to payment system, so to compare banks that is established for profit purpose to the use of cryptocurrency will not be good measure. If you transfer your crypto to exchange or out of your wallet, you are also changed fees.

[franky1]

its not as simple as the OP describes

banks dont use customers savings funds for mortgages directly.. the mortgage amounts are new money creation

however because a bank holds say an average of $25k per savings account holder. they can leverage that holding
they are allowed to create new money allocations upto 95% of money held

EG say a bank holds $5trillion in peoples savings.. (~200m people average saving $25k each)
it can generate/print another $4750billion. and spread that over upto 30 years mortgage timeline. meaning $158bill a year of mortgages can be generated/agreed each year(~3.16% a year money generation/printing)
and with the previous 29 years of current/outstanding mortgages making their repayments it refills the allocation just enough to allow $158bill next year
without touching bank customers savings accounts
if mortgage payers default. banks sell the agreement at discount to private investors to refill the allotment, and the private investors(debt recovery) then chase after unpaid debt which aims to keep the overall money creation allocation at 2%(after losses).. though this last 2 years has seen other money printing methods that have caused a 7-11% inflation, as oppose to the aim of only 2%
..
separately banks know not everyone spends all of their income/savings by withdrawing month to month. so banks put a certain fraction of those customers savings reserves into bonds/investment. where they make their interest profits

its these 'bonds' that are invested and given interest which touch bank savings customers value. which because its government bonds the government insures bank balance upto a certain limit of the FDIC.. its also these bonds that earn banks profit on the bond interest which the bank then give savings account holders a small amount of as "savings interest"
..
the funniest thing is, its actually credit unions that directly hand customers savings account balance out as loans

[Fortify]

Yes If money doesn't existing without someone borrowing this then each person who i use credit or debt Will be rewarded by Banks.
My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.
I Understood allready that we Are all just victims of scam and that's ITS not If but when people will just say banks we don't need you If we don't get rewards.
Becouse when i stake crypto i get profit but banks don't give nothing so i see people wake up and fight against financial scam and Understood we Are just the victims of crimes i don't use Banks anymore and told my bank you gona share your profit with me or get Lost my face.
So i closed my bank and full crypto and Im happy so many people do the Same now becouse everybody Understood that money comes from the debt so more we take debt more money created so i should get rewards for taking debt then If not Im out of financial system not just me a lot more people becouse the system made us victims.
I told my friend tell bank that it's a scam and his victim of bank scheme so all his friends tell Same now to their Banks and flahing front of bankers binance atm debit card.
Now the Even bankers himself might Understood ship is sinking and fastest they get on crypto and btc the better changes to save themselfes becouse this system not working i told my friend before bank Takes his house burn it down or beat up so the bank Will get broken House.
That's how it is people now Understood If they been treated bad they fight back ....
It's unfair they made mortgage rates higher without notice first so we are victims and If anyone struggle financially they now Understood it's the system and we all victims ....Same goes with cars people now smashing it up cars before give to financial swimdlers

Banks are companies. Companies are setup to make money, not act as charities. Taking in savings and paying interest on those deposits is the reward that they offer. People who are borrowing money sometimes don't pay it back and there is an "opportunity" cost on that money as well, where banks could be putting it into different ventures. The rate that banks charge is not pure profit, sometimes it has to offset losses and any administration involved. They also have to pay all their staff out of those profits, besides that borrowers are free to shop around for the best rates but there is definitely a floor to what banks can offer. You have not come up with some miraculous brainwave, rather you don't understand how banks have been working for hundreds of years.

[icalical]

My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.

Anyone who is in debt to bank is not a victim they were never get scammed, Bank is always transparent with their terms and condition, it might be tricky but it's always written on paper. If they can't pay their debt then they just made bad decision not a victim in any way.

So i closed my bank and full crypto and Im happy so many people do the Same now becouse everybody Understood that money comes from the debt so more we take debt more money created so i should get rewards for taking debt then If not Im out of financial system not just me a lot more people becouse the system made us victims.

With the exception of people who lived in a country where crypto is a legal tender (which is extremely rare now), I doubt that anyone is going full crypto. You will still need to exchange your crypto into fiat to buy stuff. And then except that you do all your crypto to fiat transaction in peer-2-peer in person, you will still need bank for money transfer when you exchanging your crypto to fiat.

[Adams0001]

I really think that people should appreciate banks for the important roles that they play in keeping our money safe until when we need to spend it, they don't tell us that money is not available when we want to withdraw. Infact banks are the safest place to keep our money and have peace of mind that we won't be robbed or lose it, very convenient to pay for goods and services directly from our bank accounts. Bank accounts are more convenient to make payments from than crypto wallets, because every business person has a bank account but very few have crypto wallets, besides banks transactions are faster and cheaper than cryptos.

It'll be very unfair to borrow money from a bank and not have the intention of repaying, if the terms and conditions were not favourable, then why collect it in the first place?

I agree with you because a bank is a safe place to save all your money without rubbery and whenever you need the money you will get it without any problems. Banks give loans to make money because people who save their money in banks don't have anything to do with it, which is why they keep it there, and banks use the privilege to give out loans and charge interest when repaying the debt and making money. Anyone who runs a business does so for profit; running a business and not making a profit is a waste of time. Some people have stated that they lock their bank and concentrate on crypto, You mean you don't have anything to do with banks and you use crypto to pay all your bills, when you're in a country that doesn't accept crypto as an exchange how did you do, I didn't believe you because anyone that is business or investment needs both a bank account and a crypto wallet to save your funds.

[DrBeer]

That is a choice and decision of the bank manager. It's not criteria, they help citizen store and keep their money to safety what do they gain in return? This is the part where giving out loans started. Instead of keeping the money in the bank without any good use of the money, they started giving out loans to reputable individuals and companies with percentages so that they could make some profit out of it.

Loans, are people's need for money that they lack at some point. And that's what loans are for, for which you pay interest. The bank HELPED the person who was short of money. And you think the bank should be thanked for helping the person/company?
Maybe doctors, agronomists, and cab drivers should pay you extra for providing you with the services you need ?
Besides, you do not realize that interest for loans is the interest that the bank pays to those who put their money in the bank on deposit, and a part of it they keep for themselves - for the provided service and servicing of the loan. If you do not like bank loans - borrow from a neighbor/friend/acquaintance, and say that he still owes you a thank you for this, and then tell here what your neighbor/friend/acquaintance will answer you ?

By the way - you do not want to give me a loan, without interest, and pay me a reward ? No ? Why not?

[demonica]

What? You borrow money from the bank because you need it. And that's the service they provide. Why would you expect a reward when you benefit from it cause you got the money you borrowed in a short period of time. It's just that, in return of lending you money, they add interest.

It's a different case in Bitcoin. You get into Bitcoin for the purpose of getting a "reward" or profit from investing in Bitcoin. But if you're the one asking banks for money, why expect a reward? Unless it's you who's depositing money in banks cause they offer small interest (tho it's not enough to consider as a profit). It's the person to blame if he is getting into such a huge debt from banks because he didn't manage his finances well. And it's not banks fault because they did their part lending money to customers who needs it. You accept the terms and it's your decision to take it. It's just normal for banks to add interest if they lend money to people cause why would they offer lending services if they'd be getting nothing from it?
 

[Doan9269]

It's better for us to know banks for what they are, some called them big time extortionist, while some say they are corperate financial loot homes, they are making alot of money from the same money me and you deposited with them in the bank when they make business with them and return nothing to us as interest, yet they will demand for an interest over the ones we lend from them, aside the charges they deduct from having our account with them as banks, I don't know hiw it would have felt if there were never an alternative like cryptocurrency to serve as substitute for using banks and their fiat.

[tjtonmoy]

Bank and the ecosystem are corrupted no doubts but at the same time cryptocurrency is not at a level right now to provide a complete solution which the banks are giving to people. You don't get much in return if you stake your money in banks but that's not the only thing banks do. For instance, you need a loan to grow your business and you have no money but some properties that you are not willing to sell. In this scenario you can ask the bank for a loan by keeping your property as a liability. If you become successful with your investment you can pay back the bank and for this service banks will charge you. I don't have any bank account and I don't think I ever will but going against the system is not going to be the best idea right now.

Bitcoin was initially created not to replace the bank but to provide decentralized services to people who hate the concept of bank. Maybe one day it will replace banks but Bitcoin is not yet perfect to do that. That is why we need a way for both of them to coexist. So that we can take advantage of both of them.

[moneystery]

if you say that creditors should get interest on their deposits, that makes sense, but why do banks need to give rewards to borrowers? it doesn't make sense, because it's like you're giving money to someone who borrowed money from you, very funny.

and you said that you closed your bank account just because you were dissatisfied with it and felt that you were a victim and went full crypto now, is that so BS? i mean, at some point i also didn't like the banking system, but up to this moment i still use it and still believe that banking makes it easier for me to meet my various financial needs. and here you say that you threw away your bank account and went full crypto, that doesn't make sense. even to withdraw or deposit crypto you need a bank.

My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.
I Understood allready that we Are all just victims of scam and that's ITS not If but when people will just say banks we don't need you If we don't get rewards.
....

it's not the bank's fault, but your friend's fault in the first place who is shameless about his debt. did he not read the agreement at the start of the loan? there are various things explained about the loan status. if he fails to pay it is entirely his fault for failing to fulfill his obligations. don't play the victim just because you can't afford the loan.

[|MINER|]

Yes, most people are victims of syndicates by banks.  People take loans at risk and banks take advantage of it.  Charges interest on every sum.  It is really disappointing that banks have increased the charges without informing. Almost people are turning away from banks now. Banks have bankrupted many people. Maybe people would not have been so disappointed if they had given good service. If they gave a loan, some interest would be charged on them.  It is normal but they charge compound interest which ends up killing people.

[South Park]

Yes If money doesn't existing without someone borrowing this then each person who i use credit or debt Will be rewarded by Banks.
My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.
I Understood allready that we Are all just victims of scam and....

I just skipped after this and stopped BS, if your friend is in debt means he took a loan and spent it wrongly, and if banks are making money then its their business and if you don't want to take a loan then don't take a loan but blaming the system after taking a loan and can't able to pay back.

Well, bank actually give rewards to people who utilize their credit cards and pay back the due amount on time and your credit score gets better so in future you can get loans for less interest.

The premise of the OP is flawed, since any company including banks do in fact offer small rewards to their customers for using their credit cards and other forms of loans, however it is mistaken to think all of that money should go towards their customers, otherwise how is any business going to survive? Also the act of shifting the blame is very attractive as people can blame the greedy banks instead of themselves, but this is counterproductive, because if a person thinks that then they will never learn to manage their finances as they should, and they will always find themselves blaming others for their economic troubles.

[davis196]

The banks rewarding the borrowers? Are you kidding me? The big retail companies like Amazon are making money out of the online shoppers. Do you think that Amazon is going to reward the online shoppers? Do you really understand how capitalism works?
The banks are making most of their money via fees, commissions and dividends from their investments. The loan interest rates are a part of their revenue, but not the biggest part.
Burning your house, which is under mortgage won't change anything, because the bank will sell the land under the burned house and in most countries, the borrower has to repay the rest of the mortgage loan, even after the bank sells the property.
When you borrow money, you have to play by the rules, that were set by the bank. There's no way around this.