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Topic: How the Bank works to make money? - page 7. (Read 3021 times)

sr. member
Activity: 2436
Merit: 272
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September 05, 2018, 01:39:45 PM
The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
That "few people" is called the government. I don't see anything mysterious about that. People just like to think it is. There are other reasons as to why the government have to print more money. One is to replace the old ones that have been worn out. We are using money on a day-to-day basis. It's just paper and paper can break easily. Second one is the economy is actually growing and we need more money printed. Transactions aren't always done digitally and most transactions are still done with paper money.

Just like other things, printing a little bit more of money isn't bad at all and doesn't result to inflation. But too much of something is always bad. Too much printing of money will result to inflation which affects the economy of the whole country and its the people who experience such consequences the most.
The governments not printing any money only the central Banks from the respective country is printing all the money but which is not controlled by their governments as per the articles I have read on the internet.

Don't believe everything what's written on the Internet. Your note about a central bank not being a part of the government may technically be true in certain cases, but even when it is true, this is irrelevant as both central banks and governments are all part of the establishment, or the ruling elite, if you please. If you choose to disagree, then I can just say that central banks themselves aren't printing anything. If you mean paper money and coins, they are printed and minted by specialized facilities which are separate companies or corporations. If you mean cashless fiat (so-called electronic, or digital, money), it is mostly created by commercial banks via credit, not by a central bank on its own.
Okay,I agree that central banks and the governments were part of something but I have a question even since from my birth on what basis the governments were printing the money? It used to be how much Gold they were holding in the old days but now,no one knows it is still private!
hero member
Activity: 742
Merit: 526
September 05, 2018, 12:41:43 PM
The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
That "few people" is called the government. I don't see anything mysterious about that. People just like to think it is. There are other reasons as to why the government have to print more money. One is to replace the old ones that have been worn out. We are using money on a day-to-day basis. It's just paper and paper can break easily. Second one is the economy is actually growing and we need more money printed. Transactions aren't always done digitally and most transactions are still done with paper money.

Just like other things, printing a little bit more of money isn't bad at all and doesn't result to inflation. But too much of something is always bad. Too much printing of money will result to inflation which affects the economy of the whole country and its the people who experience such consequences the most.
The governments not printing any money only the central Banks from the respective country is printing all the money but which is not controlled by their governments as per the articles I have read on the internet.

Don't believe everything what's written on the Internet. Your note about a central bank not being a part of the government may technically be true in certain cases, but even when it is true, this is irrelevant as both central banks and governments are all part of the establishment, or the ruling elite, if you please. If you choose to disagree, then I can just say that central banks themselves aren't printing anything. If you mean paper money and coins, they are printed and minted by specialized facilities which are separate companies or corporations. If you mean cashless fiat (so-called electronic, or digital, money), it is mostly created by commercial banks via credit, not by a central bank on its own.
sr. member
Activity: 2436
Merit: 272
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September 05, 2018, 10:49:50 AM
The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
That "few people" is called the government. I don't see anything mysterious about that. People just like to think it is. There are other reasons as to why the government have to print more money. One is to replace the old ones that have been worn out. We are using money on a day-to-day basis. It's just paper and paper can break easily. Second one is the economy is actually growing and we need more money printed. Transactions aren't always done digitally and most transactions are still done with paper money.

Just like other things, printing a little bit more of money isn't bad at all and doesn't result to inflation. But too much of something is always bad. Too much printing of money will result to inflation which affects the economy of the whole country and its the people who experience such consequences the most.
The governments not printing any money only the central Banks from the respective country is printing all the money but which is not controlled by their governments as per the articles I have read on the internet.

Did you remeber the story of Abraham Lincoln assasination? I studied that he was killed by that few people because he want to release money by the governments not by any banks.
sr. member
Activity: 798
Merit: 255
September 05, 2018, 10:45:39 AM
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?
Its like win-win  strategy. The bank lend the person in once the that person pay it weekly or monthly with Charges on it. They have many ways to earn through that.
newbie
Activity: 168
Merit: 0
September 05, 2018, 10:42:28 AM
Bank is simply a broker that connects lenders and  costumers and charge some percentage for doing this this is crazy right ? and beside that i think bank also invest their clients money and earn profit from their.
hero member
Activity: 826
Merit: 502
September 05, 2018, 10:04:15 AM
The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
That "few people" is called the government. I don't see anything mysterious about that. People just like to think it is. There are other reasons as to why the government have to print more money. One is to replace the old ones that have been worn out. We are using money on a day-to-day basis. It's just paper and paper can break easily. Second one is the economy is actually growing and we need more money printed. Transactions aren't always done digitally and most transactions are still done with paper money.

Just like other things, printing a little bit more of money isn't bad at all and doesn't result to inflation. But too much of something is always bad. Too much printing of money will result to inflation which affects the economy of the whole country and its the people who experience such consequences the most.
hero member
Activity: 742
Merit: 526
September 05, 2018, 09:15:40 AM
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 are not just lending money to their clients. They also serve as payment processors for processing transactions of their clients which are mostly companies (in terms of money). For that they charge some interest, and even if it is relatively small, the number of these transactions is so huge that the amount thus earned is pretty good to live even withing lending money to anyone. In a nutshell, banks are at the heart of the fiat system, most money in the economy circulates through them. They know how to take advantage of that. In fact, for many banks lending money is not even a main entry in their revenue books, and some banks don't lend money at all.
sr. member
Activity: 2436
Merit: 272
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September 05, 2018, 09:14:44 AM
The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
i think it's not a mystical thing, but it's their biggest income in terms of trading. so money they collect from customers is traded, so that they can meet their internal needs and earn a large income
Still it is a mystery because even the most powerful governments of this world don't have any control over how much money thery were printing so it is like some the secret group like Illuminati comes into our mind.
full member
Activity: 448
Merit: 100
September 05, 2018, 09:07:37 AM
They make a lot of money from the loan interest as the difference with saving interest is a lot, in my country the loan intrest is about 11% while the biggest saving interest is about 5%, a normal one is less than 2% so that's already a big different, add more fee based income and they earn a lot of money. There's nothing special about it and I think most people know how it works.
full member
Activity: 479
Merit: 105
September 05, 2018, 09:02:05 AM
they are just keeping the money and let it work.
banks are open for savings and let it be there.
that is wht we can communicate.
but crypto will never be like that. and crypt must have the way/
Banks are earning from the members. They let them borrow money to pay with high interest. Also they have insurance and open for stockholders which share money to them. Unlike crypto, no one controls it as it is digital. Banks offers services on the competitive companies and lend them money which can make them profitable as they pay an interest.
sr. member
Activity: 1344
Merit: 253
September 05, 2018, 08:59:43 AM
The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
i think it's not a mystical thing, but it's their biggest income in terms of trading. so money they collect from customers is traded, so that they can meet their internal needs and earn a large income
newbie
Activity: 173
Merit: 0
September 05, 2018, 08:53:56 AM
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?

First they gain their money from charging interest on money that they lend, the costumer will pay more than when they lend it and they get money charging fees from services they provide, Investment banks also make their money by trading securities in the secondary markets.
newbie
Activity: 43
Merit: 0
September 05, 2018, 08:47:02 AM
Banks borrows money on the interbank market,lend to customers at a higher rate then pay to depositors.The bank works out the cost of making the funds available to the borrower and add they add a profit margin.
jr. member
Activity: 70
Merit: 1
September 05, 2018, 08:33:39 AM
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?

Its easy dude, they just do right clickand edit current page adding more zero to electronic numbers easy as f**k.

Of course this sounds like joke but explain this sick system who give as inflation.
If you store 10 000 dollars for year for same sum you buy not more but even less.
If you store BTCs for same sum you can buy more. (Also Silver and Gold give you this advantage)
newbie
Activity: 54
Merit: 0
September 05, 2018, 08:27:59 AM
Everything from various financial services
jr. member
Activity: 91
Merit: 2
September 05, 2018, 08:24:11 AM
There is literally so many different stuff for banks to make money that it would take a lot more details to
explain however if we need to explain a lot more easily they get money and give money and they try to make sure the money they get is more than the money they give. For example simplest knowledge, they pay you certain amount for savings account, you give them your money and they give you certain % yearly for that to stay there, however when you try to take a credit line from them they loan you money for higher amount of % , hence they make money from the difference, of course they use the money they have for multiple stuff like investment and so forth however this is the most layman terms we can explain it.
sr. member
Activity: 2436
Merit: 272
Hire Bitcointalk Camp. Manager @ r7promotions.com
September 05, 2018, 04:36:14 AM
The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.
sr. member
Activity: 1988
Merit: 322
September 05, 2018, 04:05:26 AM
The banks generate money through their offered services , like car loans, housing,loans ,business capital loans, mortgages , exchanges and many more ,the interest they generates from their program ,are interest that will payed by the bank to their clients depositors, for their money to gain some profits.
There is another process called the process of credit creation which is the primary way for banks to earn money and this works when an amount is deposited in bank A and keeping the required reserve aside, it extent the remaining money in the form of loan and the same process is repeated by the rest of the banks and so on. In this way, the amount deposited initially is circulated around many banks and ultimately generates handsome amount.
full member
Activity: 1470
Merit: 135
★Bitvest.io★ Play Plinko or Invest!
September 04, 2018, 05:22:35 AM
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?

They earn because of the charges and fees and such. Banks are getting fees higher than others and that makes them create money. At the same time the interest of those credits from them, that is why long term savings to them because they can earn money through that. At the same time government are in favor of them.
jr. member
Activity: 420
Merit: 1
September 04, 2018, 03:16:17 AM
i think the bank make money by runs the business and getting some profit and share from saving and loans. so the customers has a big role in running the business of the bank
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