Quote from: slyfox on September 06, 2018, 03:31:21 AM

Quote from: EVOS on July 10, 2018, 11:15:04 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 not only rely on loaning money to the public to make profits, however most of their money is made through credit cards that have great interest rates, but another way in which they get a lot of money is that they offer investing packages in which they offer you some of the profits but as you may guess they keep most of those profits to themselves, so you take all the risk of losing money and yet they get most of the profits.

Credit cards are only a different form of credit, so it is the same credit only in the form of credit line, where you can borrow as much as you need within the limits set by the bank. Some banks do offer services of trust management when they manage your money on your behalf, but this is not their business. For these purpose specifically banks and bank corporations often establish investment firms since it is an entirely different business which has little to do with banking operations as such.

Quote from: dankboner83 on September 06, 2018, 04:50:20 AM

Quote from: EVOS on July 10, 2018, 11:15:04 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?

That is only one small source of income.
The banks invest your money immediately right after you put money into savings. They never keep a lot of money. They invest everything and make money out of the investments.

And they can't keep a lot of money in the bank itself as they have limits imposed by their governing body (central bank). They should keep the money in a central bank account, and the central banks pays them some interest on these balances. To conclude, it can be said that banks get paid interest on any funds they might have (even on deposits which they lend out immediately).