Topic: How the Bank works to make money? - page 2. (Read 3039 times)
Banks generate money through several charges on customers and also by trading with deposit from there client, also banks make money from several hidden charges to customers and also from regular COT on current account, Banks will continue to be relevant as daily business transactions takes place daily
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?
Does the bank rely solely on interest on loans from banks?
Banks bussiness not only on lending and saving. There is many bussiness that handle by banks. Banks also collect fees from their service and its huge amount. Beside that, in several country banks allowed to investing their funds in many sector
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.
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 interest on loans taken by people from the bank is one of the means the banks generate money for their operations. Secondly, the banks uses the collective deposit of thousands of people and once withdrawal is made by a few hundreds of people at a time, there is always higher rate of deposit than withdrawal. What happens to the remaining deposit not withdrawn? Banks will not be able to pay all its customers if everyone intends to withdraw at the same time and will eventually collapse. Does the bank rely solely on interest on loans from banks?
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?
Does the bank rely solely on interest on loans from banks?
Banks bussiness not only on lending and saving. There is many bussiness that handle by banks. Banks also collect fees from their service and its huge amount. Beside that, in several country banks allowed to investing their funds in many sector
I don't think that banks offer any free service in my country. The list of services they charge is endless. Loan, Fund transfer, withdrawal from ATM, request for account statement, reference letter, Signature confirmation etc are few of these.
mostly made up of loan, leasing, business investment and government bonds.
Banks make money and contribute a lot to country’s economy by getting benefit as transaction cost from many users who send money here and there or all over the world. Furthermore, they cut annual or sometime somewhere monthly costs per their bank rules. Through these ways banks contribute to economy and have great part in building up countries. They bring new innovations like insurance as well as other schemes where there is possibility to make some money.
The bank's income mainly comes from receiving interest from the loan, but I think there are other sources of income that the bank earns in one way or another.
Simple way bank could make and get profit with the bank member money, where they have loan and borrow their money for every one needed the money and they have pay more to bank with the rule have agree by borrower.
money is like a commodity, buy it cheaper in the Central Bank and sell it more expensive
This is called the credit creation. The banks earn money by the process of collecting deposits and advancing them to other costumers for money which is to say that they charge interest on the money given as loan to the costumers. This is how they make money with the money of other people and in turn cost these people with other charges that the costumers are not even aware of in the form of ATM charges, annual clearance charges and so on.
They possess the money, people give them their money for free and they easily invest it and use effectively, that's an example. They have limitless opportunities to get profits.
Banks live at the expense of funds invested in storage, while they increase this amount several times and give as a percentage to the borrower. Moreover, the borrower receives a very small part of the amount that the Bank earned on his money by issuing loans. also, banks earn doing currency exchange, insurance, sale of precious metals. These are not all ways of earning banks.
You are right. I have a friend who is a bank manager. He told me that the head office has given him a task for new accounts. A manger will show his performance by increasing the number of account holders. The more the accounts the more the money they collect. At the end of every year banks calculate their overall performance of the year and announces the bank with highest holdings as number one. The banks have several ways in which they make their money. One of the means are through the sundry charges and charge backs.
I agree with this. One of the main reason that is why the banks create money is when they put charges in every transactions they are with in. People put their money im the bank because of its accessibility and also there are some payments transactions that is easily done here.
mostly made up of loan, leasing, business investment and government bonds.
Banks are evaluating their money with various methods of gain. The investments made gain the difference between the accumulated foreign exchange reserves and the deposit-loan interest rate. Banks with low credit interest and deposit interest generally only earn significant income through investments, while high interest rate banks are generating revenue over the differences between deposit and loan interest rates.
money is like a commodity, buy it cheaper in the Central Bank and sell it more expensive
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?
Does the bank rely solely on interest on loans from banks?
Bank have many different source income, Banks collecting fee from customer transaction and i am believe its large amount.In several country, banks allowed to invest in stocks market and others instrument
I think banks make money from a variety of sources, but mostly from lending. In addition to loans, banks also make money from ATM card services, VISA cards and many other types of credit cards. In addition, they invest in large projects and expand them throughout the country and the world
i think the main source for bank income was monthly fee from their clients.it is come from atm fee services, accounts monthly fee, transaction fee and many again. Bank have the way to make money for their bank member money and loan for other and take much benefit from loaner to get more than their money borrow, this the way how bank could make money.
The bank makes a profit from selling financial services, such as giving loans to individuals or companies, money transfer services between banks, providing credit through credit cards, all kinds of credit such as vehicles, housing, education, holidays, etc. While for capital banks get credit from central banks or community savings. Banks can make new money when they lend. New loans throughout the banking system create new deposits elsewhere in the system. This money is usually raised by lending behavior and decreases as loans are repaid faster than new loans are made.
The major earning of the banks in interest. They give money to its customers on interest and receive more than its principal value. They also provide many other small services like bank transaction, government bonds, mutual bonds etc. they also invest their capital in different project and receive its shares. On the whole banks earn from many resources. Jump to: