This is because banks technically own the money and they only let you borrow it.
If you let someone borrow your phone, do you just give it to them or do they have to return it afterwards? Common sense.
What you're describing is communism.
Topic: Why the banks dont give free money? Why they loan it? - page 5. (Read 8772 times)
Because giving out free money just would not make sense, the banks need to make money to so if they would give out free money they would not make any progress in making money.
Yeah that is what I mean the bank have a business to and they need to make sure that they also make money. So giving out free money is something that nobody really does. They loan it but you will have to pay extra back so you actually pay money to loan money.
Banks have operating expenses like pay salaries, utilities, building rent and other consumables so they need an income and for them to have income they have to come up with a money making idea like loans and they earn from interest, aside from the interest they also earn from the penalties paid by depositors who did not meet a certain amount of account balance per month.
Definitely, they are operating in business and they cannot operate without its people, bank have employees, like, (tellers, cashiers, managers, accountant, auditor, loans officers, middle and top management).All of them needs to be paid in order to function and operate in banking hours, without your bank income you cannot pay them and there is no operation, pretty simple right?
Yeah its pretty simple and in addition to that why would it be called a bank anyway if they give free money?
I do not mind for the banks to earn money. They provide a essential service service to the society. When they use bitcoin, they can make more money.
Banks have operating expenses like pay salaries, utilities, building rent and other consumables so they need an income and for them to have income they have to come up with a money making idea like loans and they earn from interest, aside from the interest they also earn from the penalties paid by depositors who did not meet a certain amount of account balance per month.
Definitely, they are operating in business and they cannot operate without its people, bank have employees, like, (tellers, cashiers, managers, accountant, auditor, loans officers, middle and top management).All of them needs to be paid in order to function and operate in banking hours, without your bank income you cannot pay them and there is no operation, pretty simple right?
Yeah its pretty simple and in addition to that why would it be called a bank anyway if they give free money?
Banks have operating expenses like pay salaries, utilities, building rent and other consumables so they need an income and for them to have income they have to come up with a money making idea like loans and they earn from interest, aside from the interest they also earn from the penalties paid by depositors who did not meet a certain amount of account balance per month.
Definitely, they are operating in business and they cannot operate without its people, bank have employees, like, (tellers, cashiers, managers, accountant, auditor, loans officers, middle and top management).All of them needs to be paid in order to function and operate in banking hours, without your bank income you cannot pay them and there is no operation, pretty simple right?
Yeah its pretty simple and in addition to that why would it be called a bank anyway if they give free money?
Banks have operating expenses like pay salaries, utilities, building rent and other consumables so they need an income and for them to have income they have to come up with a money making idea like loans and they earn from interest, aside from the interest they also earn from the penalties paid by depositors who did not meet a certain amount of account balance per month.
Definitely, they are operating in business and they cannot operate without its people, bank have employees, like, (tellers, cashiers, managers, accountant, auditor, loans officers, middle and top management).All of them needs to be paid in order to function and operate in banking hours, without your bank income you cannot pay them and there is no operation, pretty simple right?
Banks have operating expenses like pay salaries, utilities, building rent and other consumables so they need an income and for them to have income they have to come up with a money making idea like loans and they earn from interest, aside from the interest they also earn from the penalties paid by depositors who did not meet a certain amount of account balance per month.
this is such a stupid question why do you think banks cant give you free money if they give you free money they need to give everyone free money. I dont think that they have enough to just give everybody free moneys...
Because giving out free money just would not make sense, the banks need to make money to so if they would give out free money they would not make any progress in making money.
If banks give out free money, then the currency base will expand infinitely. The loaning part is also giving banks a bit of profit, so that they can sustain in this huge fiat scam of our world.
Banks want a slice of the profit, under the fractional reserve scheme.
Banks want a slice of the profit, under the fractional reserve scheme.
I think loan is a scam. An economy needs, only, free funding and a tax system and nothing else. Do you agree?
The banks use people`s savings to give loans and to pay interest for all the deposits.
You should read more books about economics and finance.
Free funding?Really?
Banks loan currency so they can get an expected return when the buyer brings it back. There are a lot of factors that go into what the interest rate for said loans will be.
However, if they knew that the borrower was going to blow his money away, they wouldn't lend it.
Adverse selection problem, interest rate is part of the collateral.
However, if they knew that the borrower was going to blow his money away, they wouldn't lend it.
Adverse selection problem, interest rate is part of the collateral.
Why would banks give out free money? There isn't any purpose for it and the person interested in taking out a loan didn't work for it, so they don't get it. For all the communists out there; equality means an equal opportunity, not an equal result.
They loan it because they got the money through providing something for other people, and take that money and make more off of it. It all makes sense, and they don't give it out for the reasons I mentioned above.
They loan it because they got the money through providing something for other people, and take that money and make more off of it. It all makes sense, and they don't give it out for the reasons I mentioned above.
Are you encouraging communism, where everything is provided? If so, please stahp.
Banks are businesses. They are built to make profit while providing a service. They are good at what they do, is all I can say.
Banks are businesses. They are built to make profit while providing a service. They are good at what they do, is all I can say.
Banks are just businesses and need to make money to pay employees like everyone else.
Who do you think pays for those beautiful golden parachutes that the fat cats get when the are given their walking papers, we do the users of their product.
Yeah, the banks made their money from deposits of the people because they will use it to lend the lenders in the market with an interest higher than the interest given to the depositors, its a matching business.Who do you think pays for those beautiful golden parachutes that the fat cats get when the are given their walking papers, we do the users of their product.
Well thank God I don't need any big loan like a loan for the house cause I have already my house. If didn't in my country disguised interest rates can destroy the life of a person , the banks makes a lot of advertisements like you pay 2.5% interest rate for first 3 years and 0% for last 4 years, but in between as the loan for a house has a minimum of 18 years of mortgage repayment the real interest rate or the average per year is about 28%. Now this is a plain robbery if you ask me.
The wouldn't be called banks if what they do is give away free money. They'd be called charitable institutions. Banks, much like other businesses, are in it for the profit, which is the end goal and main reason why we establish businesses. There is an old saying that coin is barren, and should not bear interest. Banks, obviously, don't believe in that saying.
It is a question of socio-economic organization of society. In the countries of the former Soviet bloc, banks play a different role than in the western world. Islam on the other hand, generally prohibits usury. There are many nuances. Japanese for years enjoyed zero or near-zero interest rates on deposits with the idea to support the development and country. Can not be answered unequivocally.
But in totality, banks are profit oriented organization, they only operate because of money. They are in business of trust and they are governed by the state so they need to follow the memorandums the central banks issued from time to time, if they have loan program you can assure that the interest is justifiable in the area but some banks go shady with hidden charges and they are most likely penalize by the central bank.
It is a question of socio-economic organization of society. In the countries of the former Soviet bloc, banks play a different role than in the western world. Islam on the other hand, generally prohibits usury. There are many nuances. Japanese for years enjoyed zero or near-zero interest rates on deposits with the idea to support the development and country. Can not be answered unequivocally.
Of course they are loaning cause they want a profit from it, even its long term they want a small profit.
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