How the Bank works to make money? - page 14.

mrcash02

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Quote from: helen28 on July 18, 2018, 04:43:09 PM

Quote from: webdevmastery on July 18, 2018, 03:42:49 PM

Quote from: r32godzilla on July 11, 2018, 07:55:38 PM

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 get their money mainly from issuing interest loans to their customers and as transaction fee for money transactions.But bitcoin has caused a huge fall in their revenue from transactions.

Yes you are right and that is the reason why cryptocurrency is a threat to the business of banks because it can actually decrease the people that are placing their money on their business which will slowly decreasing their own profits.

They are using our money to lend to other people in that way they earning a lot but they are just giving us a rate in which is not fair unlike here in cryptocurrency we can earn what we are earning in a bank for a year in just a day.

Yes. They lend your money to others, while sharing a very little part of the interest with you... The interest they charge from borrowers is much higher than the comission they give you back. Also, everything is secret: as a saving account holder in the bank, you don't have access to any detail about how your money is being used, how much the bank is really making with it. And I'm sure the reason behind this is to not create revolt among the bank's users.

Banks work with bureaucracy, shadiness, corporatism and protectionism, that is how they make money.

bennypagulayan

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Quote from: helen28 on July 18, 2018, 04:43:09 PM

Quote from: webdevmastery on July 18, 2018, 03:42:49 PM

Quote from: r32godzilla on July 11, 2018, 07:55:38 PM

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 get their money mainly from issuing interest loans to their customers and as transaction fee for money transactions.But bitcoin has caused a huge fall in their revenue from transactions.

Yes you are right and that is the reason why cryptocurrency is a threat to the business of banks because it can actually decrease the people that are placing their money on their business which will slowly decreasing their own profits.

They are using our money to lend to other people in that way they earning a lot but they are just giving us a rate in which is not fair unlike here in cryptocurrency we can earn what we are earning in a bank for a year in just a day.

Banks use lesser depositors' money with higher profits, in addition to the regular banks of large corporations and they also use that money to invest in very large projects. Earn more profits. The management of the bank is weaker than the blockchain technology and so many banks are applying this technology to manage.

pitiflin

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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?

There are a few things you need to know: The basics first, the difference between the Debit balance and the credit balance. Debit balance would be the withdrawals and credit would be deposits.

Interest rates, yearly credit card fee, late payment fee, initial set-up fee, Remittance fee, trading Foreign exchange, giving out short loans to other banks, cheque cancellation fee. This is more than enough for what you need to know. Don't ask for more. Lips sealed

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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?

As what you said ,yes the bank's earned from the different interest on loans from the banks and other kind of quallateral loans,thats is the main reason now the banks still consecutively work and operational ,because they are depend on the interest and processing fee of the different kinds of operation on there establishment.

helen28

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Quote from: webdevmastery on July 18, 2018, 03:42:49 PM

Quote from: r32godzilla on July 11, 2018, 07:55:38 PM

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 get their money mainly from issuing interest loans to their customers and as transaction fee for money transactions.But bitcoin has caused a huge fall in their revenue from transactions.

Yes you are right and that is the reason why cryptocurrency is a threat to the business of banks because it can actually decrease the people that are placing their money on their business which will slowly decreasing their own profits.

They are using our money to lend to other people in that way they earning a lot but they are just giving us a rate in which is not fair unlike here in cryptocurrency we can earn what we are earning in a bank for a year in just a day.

webdevmastery

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Quote from: r32godzilla on July 11, 2018, 07:55:38 PM

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 get their money mainly from issuing interest loans to their customers and as transaction fee for money transactions.But bitcoin has caused a huge fall in their revenue from transactions.

Yes you are right and that is the reason why cryptocurrency is a threat to the business of banks because it can actually decrease the people that are placing their money on their business which will slowly decreasing their own profits.

SixOfFive

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There are a number of ways through which bank make money. They don’t rely on the interest from loans only but also charge fees for providing many more services. Banks charge fees for everything they do relate to your money. They provide overdrafts, discounts bills of exchange, payment of cheque, foreign currency exchange, consultancy services, plastic cards, transfer of funds, merchant services and obviously they charge money for all of these.

Mind Control

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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 invests money you deposit to a business, loans, etc. in order for them to gain. Banks have protocols about how much they can invest. For instance, you deposited $100. The bank will hold (let us say) 10% of the deposited amount and store it in their vault. The remaining 90% goes to their projects, investments, or whatever is their way of earning. So basically, your money makes the bank and the project they are investing in alive.

The 10% stated above varies from different banks depending on their own protocol.

omonuyak

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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?

There are many ways bank makes money from service charges and investments. Many bank are into lending and from the proceeds pay their salary. However, bank also do incurred some expenses and if this is not well manage we would still have the same problems of debt that most fail business are having.

ejandjm18

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There are so many ways on how the bank works to make money, they offer loans to their clients, like car loans, housing loans, with a high rate of interest. Some banks also offer services like payments solution which includes service service fee and transaction fee.

thecoder2017

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There are so many ways a bank can make money they offer loans to their clients housing, business and car loans that had a high interest also they offer insurance to their depositors.

chosenboy4

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Policy to make money is different for each bank. many banks focus more on lending however some focus on Services and payments solutions .

mahilchii

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gets money from public and gives out that fund to different group of public and charge interest and fees towards that and runs their business. This is how banks work and ultimately banks gets more profit than the one who deposits or share his funds to banks. This is why crypto currency cam to demolish the banking system and give people peace of mind and avoid brokerage. In another 5 to 10 years banks will be invisible I think.

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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?

Not only from that, there is a lot way to gain profit, interest do one of the best way bank to earn money but i believe many there is a lot way for bank to gain money such as money management and imagine how much money a bank could fund in short of time and what can they do with that money. Market stock might be the best way for them to invest and i think it could turn out be big earning from them cause they do have a great a mount of capital that can be use to invest in market stock.

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I think the biggest way a bank could earn money is through lending money to their customers. With people depositing their money they are even paying for its interests. With so many customers who borrow money for business or any other forms of loans surely they will make more profit.

Gudcrypto

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Transaction fees, hedging fees, consulting

Zohina

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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?

The definite profits from the bank are:
1. profit from bank interest or profit sharing system.
2. profit from confiscated assets.
3. income from services, for example monthly administration fees, transfer fees to other accounts.
4. profit from infestation.
5. profit from safe deposit box (SDB) service.

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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?

Off course that is the way they earn money.

Interest on Loans
Interets for Lending to business/corporates

They invest 0 money form their pockets because they use our money that we keep in our savings accounts!

So thats like pure profit when they give money on demand to someone. On an average each bank has 3-4% of interest rate for keeping our money into account. However on an average they will charge 2.5% for banking services and credit cad services as well as whenever you use the bank cards.

Plus their loan interest rates are always higher than 10% giving them big profitability. Enough to run the whole banking business.

nabinkhadka

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Yes , highest income come from the interest they charge from their costumers. beside that there are many ways banks makes money. like inter bank lending , commissions from bid bonds , profits from foreign currency exchanges , different model of investment in large projects etc.

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Quote from: Tory-Tory on July 12, 2018, 06:27:44 AM

Any bank takes a loan from a national (central) bank and then issues a loan at a higher procent to its customers. If you need more detailed information - better find it in Google.

Nope! That's not entirely true! The basic framework of a Bank is to get deposit from the public and companies and lend a percentage of that money to the same sector to earn the different is interest rate. In my country, if you keep money into your personal savings account, you will earn 4% interest rate. However, Banks lend that money to the public at 8% interest rate. The difference of 4% is what the Banks earn.

Borrowing money from Central bank is way to maintain the SLR (Statutory liquidity ratio) as well as to meet various expenditure related to bank's operations. It is also called Intra-bank lending market where the percentage of interest is far less than a public loan. There are many other factors associated with it and it is not possible to cover everything within the span of this reply. But the basic framework is mentioned above.

Topic: How the Bank works to make money? - page 14. (Read 3021 times)