Topic: How the Bank works to make money? - page 9. (Read 3021 times)

Banks are financial services, they receive deposits and distribute to businesses or borrowers, when they give interest only about 12% a year, while for borrowers they collect interest of up to 40% per year so that the bank's profits are very large.

What I know about the main bank's income from the interest rate earned, the transfer fee from the ATM to another ATM and from the stock.

the banks have sold the most important source of income. that is, the banks sell money. It also sprints to many institutions and organizations. workers' salary payments, for example. or agreements with states. ie they earn money from transactions related to money. and they exploit people.

Banks are offerings a lot of things like insurance, house loans, car loans, or depend on your needs you can check what they can offer to you that is depending on your needs.

Of course, loans for the bank are one of the main sources of profit. However, banks still maintain accounts of various individuals and legal entities and have a percentage when transferring their money. These are the two main lines of banks' earnings.

bank make money to pay the salaries of bank employees are interest (conventional bank) This is the main source of income of each bank. there is also by borrowing bank funds for long-term development with current interest. Interest is the income the bank receives from the party who borrows money from the bank. The bank itself, lending the money uses money collected from its customers.

Actually banks reinvests money on stocks and assests plus of course the loans they give out. But the main income of banks comes from the investments they bet on with your money. Of course some banks have pre need products like insurances where they get their money from but the bulk is still on investments.Policy to make money is different for each bank. many banks focus more on lending however some focus on Services and payments solutions .

Banks earn a lot from the sale of collateral and business lending. I for example know that many banks have income even from loans on 1+ day. Also, the income of banks depends on the country in which they are located. In poor countries, credit rates are higher and the population is poor, so they are more likely to use credit.There are so many ways in which banks earn a lot of income, interest income comes from borrowing customers in loans, large interest income depends on the amount of loans disbursed and the interest rate set, the role of the bank as an intermediary institution that collects funds from the community and channeling funds in the form of credit to the business sector or individuals in need, and many more that can be profitable for my bank only illustrate small samples, and others have answered more.

Banks work mainly due to loans and accepted deposits. Money depositors are sent to give loans, which are returned with interest.

My co teacher who was once a manager of a well known bank here in our place said they invested some of the money in the stock exchange

The bank as financial company works really on money and have income through their offerrings  ,such mortgage , loans like car ,housing, educational ,insurance, so that the deposited money of the incestors and depositors will gain also interests ,from their offered programs, so these are the money generating activities of banks.

banks can pay their employee by the interests coming from its costumers.

in addition they provide loans to customers with greater interest. and i think their large income is from stocks whose capital is collected from customers. with a healthy bank system, i think the greater its wealth will be

they simply used the money that the depositors put to their bank, and then with that they put it in many business ventures, also they can make money thru the services they made for the customers like what ATM does with just simple withrawal you will pay for it. But the greatest investment they do to earn money is putting it in the stock market like what you have said.

The banks offer a security for keeping the money of other people and if the people will deposit or put money to the banks then the banks will keep it secured and they will promise them a very small interest so they will have more reason to keep their money at the bank and the banks uses those money to invest it in the stock market to create profit while they are only giving a very small return to those people who secretly lend them money to be used as a capital.

Banks are just like other businesses. Their product just happens to be money. Other businesses sell widgets or services; banks sell money -- in the form of loans, certificates of deposit (CDs) and other financial products. They make money on the interest they charge on loans because that interest is higher than the interest they pay on depositors' accounts.

The interest rate a bank charges its borrowers depends on both the number of people who want to borrow and the amount of money the bank has available to lend. As we mentioned in the previous section, the amount available to lend also depends upon the reserve requirement the Federal Reserve Board has set. At the same time, it may also be affected by the funds rate, which is the interest rate that banks charge each other for short-term loans to meet their reserve requirements. Check out How the Fed Works for more on how the Fed influences the economy.

Loaning money is also inherently risky. A bank never really knows if it'll get that money back. Therefore, the riskier the loan the higher the interest rate the bank charges. While paying interest may not seem to be a great financial move in some respects, it really is a small price to pay for using someone else's money. Imagine having to save all of the money you needed in order to buy a house. We wouldn't be able to buy houses until we retired!

Banks also charge fees for services like checking, ATM access and overdraft protection. Loans have their own set of fees that go along with them. Another source of income for banks is investments and securities.

The banks make their money through various ways including the sundry charges they imposed on customers on most transactions.

It is about accepting money or deposits from the people and makes that money for loans and of course with interest. It is just like a chain with different channels dealing with money.

I think when people could borrow some money from bank or when people trying to make kinda bussines then they need a budget to borrow from the bank then they need to give back more than what their borrow.

banking systems earn money from multiple ways but getting interest rates from loans and taxes is where the main source of income. but they do have some other mediums of money making such as they earn money on bonds and lands, tourist places, Monuments, sports stadiums. Except all these, they earn at 3 major ways: net interest margin(You give banks permission to use your money to pay others loans and make money), Interchange(transaction charges they collect on your debit or credit cards) and Fees.