How the Bank works to make money? | Bitcointalksearch.org

deppil

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Quote from: nur rochid on November 23, 2018, 03:57:37 AM

Quote from: efxtrader on November 23, 2018, 01:28:04 AM

Quote from: EVOS on July 10, 2018, 07:15:04 PM

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?

Bank have many bussiness not only lending and saving. In America, banks able to investing their funds in stocks or commodities and i think thats the biggest source for paying their employees

i agree, their stock business is the biggest income, compared to others, such as loans. by collecting funds from the masabah, the bank has a large capital to put it in stock trading

besides that they also have many subsidiaries. one bank can have many subsidiaries in various fields such as insurance, financing,
and so on. banks with lots of funds from customers certainly can benefit from anywhere.

Xising

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Quote from: EVOS on July 10, 2018, 07:15:04 PM

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?

Usually, banks use the money of their clientele by way of using it as investments to either businesses or the stocks, which in turn, would give them some returns, while at the same time keeping the integrity of their clients' account entrusted to them. Also, by imposing interest charges on loans or other ventures, they get a premium from the money they send out, and since banks are notorious for collateral and similar means to secure the money they lend to people, it's still an advantage to them even if such people won't pay their debts because they can sequester them from other means.

willwin66

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Quote from: EVOS on July 10, 2018, 07:15:04 PM

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?

We can not know exactly how the banking system work but I'm sure that their income not only come from loans.

nur rochid

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Quote from: efxtrader on November 23, 2018, 01:28:04 AM

Quote from: EVOS on July 10, 2018, 07:15:04 PM

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?

Bank have many bussiness not only lending and saving. In America, banks able to investing their funds in stocks or commodities and i think thats the biggest source for paying their employees

i agree, their stock business is the biggest income, compared to others, such as loans. by collecting funds from the masabah, the bank has a large capital to put it in stock trading

efxtrader

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Quote from: EVOS on July 10, 2018, 07:15:04 PM

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?

Bank have many bussiness not only lending and saving. In America, banks able to investing their funds in stocks or commodities and i think thats the biggest source for paying their employees

SkyFlakes

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Quote from: EVOS on July 10, 2018, 07:15:04 PM

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 not, bank is a business and it has many ways of having money. This includes their charges in many transactions done by the customer. Also they have a part on the interest that you got which I think is where most of its income came from.

demonz666

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yes interest from loans I think is the main source of bank profits. then the bank also benefits from seized assets. if we borrow money in the bank, the bank must have valuable assets such as land, house or vehicle certificates. this is used as collateral when bad credit. when there is bad credit, the bank will sell or rent our assets. and also other sources of benefits from monthly administration fees, transfer fees to other accounts. in my opinion that's the way banks get money.

criza

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Banks have been sinificant part of people's lives when it comes to their finances and monetary concerns. It does not only an institution wherein we kept our money. It is also a whole institution of various financial-related activities such as loans, business relations and sometimes insurance. With these, as far as I know, bank makes money not just by the interest of loans alone but by the return of investments they make. Bank uses other people's money to use it in business and make it grow over time. We all know that money will not grown on its own if we do not make it work and run. Moreover, bank makes money through their commission on the services they have rendered since almost all of their services have charges.

brooklynian

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Banks make money in a lot of ways. They earn commission on all the services they render, including some services that are supposed to be free. They earn interest on customers savings by lending it out at an interest higher than what they pay the depositors.

BlueStackz

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Quote from: Rhosadah on November 20, 2018, 04:28:17 AM

the bank's income that we know only relies on investor loans and customer savings, but in detail there are two mechanisms that generate for banks:
investment product sales
(fee based income)
sales of liability products such as savings & credit (interest based income).

You’re right, that’s the way they make money and I believe they are able to get funds enough to pay their workers and still have much left. For anyone who would like to read about how banks make money and how they functions, I can refer to this article on a popular site called INVESTOPEDIA

:https://www.investopedia.com/university/banking-system/banking-system3.asp. You can read everything you want to know about how banks make their money there.

Silberman

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There are many ways in which banks make money, not only they offer loans, they charge for every single service that they offer to you, they charge a fee for everything that you do with your bank account, in my country they charge even for checking in your balance on an ATM, and finally they also offer investment services in which they use your money to make money for themselves and they pay you a small amount of money to you.

cizatext

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The banking sector is linked to so many other sectors in the society where the invest and generate income on a constant basis, bank are involve in so many financial activities that at the end yield them profits and interest from where they pay their staffs. Such as credit granting! The bank give out loans which are pay back with high interest. And again banks invest the deposits customers keep with them into other business to make gains.

CryptoMoar

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yes, I think banks can make money to pay employees and business operations by relying on interest and transaction taxes that will be paid by customers. and the more customers or people who use bank services, the more profits the bank gets. the bank will certainly continue to prosper and will never die if there are still many people who want to deal with the bank.

zoeylee

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In my opinion, all banks have big capital in order to sustain financially. It has also with a lot of clients and investors.

gamalzour

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Quote from: EVOS on July 10, 2018, 07:15:04 PM

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 can’t believe someone is asking this kind of question banks make money more than you even know. People make transactions everyday and banks charges fees for every single transaction you make, and even to pay in money into the bank, interest on loans and a lot of other ways. Banks make income ever minute, so that’s not even a question you got to be asking. Even at the end of the month they also charge their customers.

trauchot

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The biggest banks have millions of users who use their services and who constantly pay commissions on all transactions made and each month a separate fee is charged for using a bank card, the more limits on your bank card, the more you have to pay. Also, many people invest their money at interest in banks and from this the bank gets a good profit.

AlphaGoo

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The easiest way for banks to make money is to lend money to companies that need money. This is the most profitable way. Usually, companies borrow hundreds of millions of dollars. They can earn interest from it.

Rhosadah

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the bank's income that we know only relies on investor loans and customer savings, but in detail there are two mechanisms that generate for banks:
investment product sales
(fee based income)
sales of liability products such as savings & credit (interest based income).

AlutBitcoin

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Quote from: biskitop on November 15, 2018, 08:56:30 PM

the bank will borrow money from the world bank to repay the country's debt, and then there will be a exchange to the local currency for circulation to the public by printing.

That process of making money by the bank is called the credit creation and this is done by the process of advancing the money as loans that have been deposited with them by the costumers using banking services.

Nnedaddy1

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The bank generates money by standing in the gap between lenders and borrowers and from transaction charges.
Banks receive money from lenders and pays the lenders interest rate for receiving their money, then give the money to borrowers at a high interest rate...... thereby make huge profits.

Topic: How the Bank works to make money? (Read 3021 times)