Post
Topic
Board Economics
Re: How the Bank works to make money?
by
liseff3
on 12/10/2018, 10:38:12 UTC
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 Bank's the only financial institution the most widely used by the wider community, especially in overcoming financial problems, either by ways of saving, credit, investment or other financial activities.  If we look from the outside the bank seems to be very helpful to the community, they are willing to go to great lengths to save people's money, channel the money and even provide millions of ATMs which make it easier for customers to transact.  But basically, profits are what each bank prioritizes.

Each bank's identical to what's called interest. Interest's one of the bank's main income received from customers who have borrowed money. Actually what the bank loaned to its customers is money collected from its customers. That's where the bank benefits from interest. In this case, the bank doesn't use its money, because the bank's money has been used up by the government. Very cunning, isn't it?
Not only that, but the bank also has many other fields of business, for example: Confiscated Assets, Collateral Items (collateral), Transaction Services, Investment Funds, and Safe Deposit Boxes (SDB).