How the Bank works to make money? - page 11.

Zalura

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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?

actually the bank's income is very much, indeed one of them is from the loan interest from the customer, for example the mortgage financing, credit card vehicle loans and the like, the second is in the form of services, for example securities safekeeping called bok deposit, interbank bank transfer will attract fees transfer, the guarantee provider from the bank, I think the opinion is very much

Naughty Princess

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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?

Banks make money from loans of the members is what first comes on mind. Bank has many services that offers to their members also they find their stock holders. Big interest they get on every loans they lend where they get money to pay their employees. They also have big companies trusted that can support get their services.

mornabo

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Quote from: admosfir on August 28, 2018, 05:02:07 AM

I think interest is the main income of a bank, sometimes the bank provides installments for valuables such as home and car credits, from this credit the bank also get benefits

The bank's income can be from many things such as interest from loan funds in many people, administrative fees, credit card interest,
etc, other things banks also usually have subsidiaries like business companies so they use customer funds for the company's capital

jack wira

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The bank is home to money or a savings and loan place for every customer who borrows at interest, it is possible that the interest is all for the bank administration to pay salaries and so on

hilawnasaging

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Making the money and securing the money are two different sides. A different institution is responsible for making the money, while banks are responsible for securing it. Just because there are a lot of money in the bank doesn't mean that they are ones who are making money, there is a different institution responsible for it. Like here in our country, there is a different institution who's responsibility is making money rather than securing the money.

a4techer

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In my own opinion they are not creating money but they are earning to support the salary and other benefits of their employee was the interest ,lending, fees ( like account, ATM, Penalty, commissions, application fees), loans and many more. Banks was to brainy for earning money just like embracing cryptocurrency in their business.

Moblie_Legend

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Quote from: patarfweefwee on August 29, 2018, 04:32:37 AM

When a person places their hard earned money in the bank. The bank yakes it and invests it on different things, like stocks, loans, infrastructures and alot more. The income they get from thise investments they used to pay the employess and makes the owners rich while the people that had their money placed in the bank gets chump change.

In principle, banks work to accumulate funds from the public / corporates (called third party funds) to be channeled into credit to the public / corporates. As compensation for third parties who place funds in the bank, the bank provides compensation in the form of interest to the fund owner. Likewise, when a bank distributes credit, the bank withdraws interest on the credited funds.

ylnar123

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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?

Banks earn money through the deposits of people saving their money to the bank. The money saved in banks were invested on different businesses like real estate, agriculture and many more. In that way people's money will have profit and that profit is the earnings of the banks.

lephuqui

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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 revenues are available for transaction fees, loans, and investments. They usually invest in government bonds. Some banks will have additional revenues thanks to cooperation with foreign companies

liseff3

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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?

At first glance, the bank does look like a social institution which doesn't prioritize profits and which's most widely used by the community especially to overcome financial problems either by ways saving, credit, deposits or other financial activities. The bank also seems to be very helpful, even though its activities only save people's money, and channel it through thousands of ATM machines, which they have provided. But make no mistake, it's precisely the bank's a financial institution that reaps huge profits, even the advantage's the priority.

The main sources of income for each bank are interest (conventional banks), profit sharing (Islamic banks), confiscated assets, monthly administration fees, transfer fees to other accounts, etc.

patarfweefwee

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When a person places their hard earned money in the bank. The bank yakes it and invests it on different things, like stocks, loans, infrastructures and alot more. The income they get from thise investments they used to pay the employess and makes the owners rich while the people that had their money placed in the bank gets chump change.

crwth

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Banks get significant profit from a person’s loan or even a group of people. These loans have interest per month, also fees when you fail to make due with your monthly payment. Buying and selling of different currencies are also a source of income, and they’re far different than those at small pawnshops or money changers. If you have an account and do not meet the maintaining balance, they’ll deduct fees continuously until you can maintain its balance. Basically, it comes from people.

F_Ivanov1993_

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They take money from people and wrap them up for their own purposes and return it to people with interest.

Madara_Uchiha

jr. member

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The way banks make money depends on the types of activities that they carry out. But almost all of them advertise their deposits and use the funds received from the population to lend to individuals and legal entities, earning a margin - the difference between the rates on deposits and loans. Along with direct loans, a source of income can be various forms of business financing, including factoring.

Brian_Hunt

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There are actually many ways banks make money. One of the major ways is by their government backing. The Central Banks in many countries are controlled by a crooked system. They do not always print money in proportion to the amount of gold they possess. Most banks get odd bail-outs from the Central Bank. But some people might consider this as some conspiracy theories. Anyway, there are other ways too. The transaction fees they deduct consistently might mean little to the client but in the end, when accumulated, it amounts to a huge sum. Loan interests and other factors also play a big role.

BigBos

sr. member

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they make money based on their intrinsic value. the more intrinsic the money has, the more the amount will be, and the less amount of money that allows the value of the money to rise. well, but for now I don't really understand the system.

admosfir

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I think interest is the main income of a bank, sometimes the bank provides installments for valuables such as home and car credits, from this credit the bank also get benefits

gambitcoin53

member

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i think one of the biggest way for banks to make money is through insurance from loans of their clients, like property, car and salary loans, most of their clients becomes delinquent and they declared their clients with a certificate of bankruptcy then the insurance will pay them, one way to make money also are they invest their client's money on stocks and once they reap the profit on stocks trading, they make a fortune out of their client's money.

andriw

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Banks generate profits for operations and pay their employees from interest or profit sharing from loans, confiscated assets when a bad loan occurs, income from each service provided to customers, mutual fund investments, and from Safe Deposit Box services.

Nnedaddy1

copper member

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The banks are the intermediaries between the lenders and borrowers.
Banks receives money from lenders at a miserable interest rate, then lend to borrowers at an outrageous interest rate.
That is how banks make their money.

Topic: How the Bank works to make money? - page 11. (Read 3021 times)