This is what makes financial institutions very wealthy.
You forgot one of the most important sources of revenue for banks which is interest from loans.--snip--
This one is really interesting, cause when i applied for a mortgage loan for my house many many years ago, i did read up on how banks give loans, and it's downright criminal.
If I (a private person) give you (another private person) a loan for a house that costs 300.000 euro's, i first have to have 300.000 in my account, then i transfer the money to you and you can buy a house using this money. Each month you'll have to give me a fixed percent (for simplicity's sake, let's say it's 5%)...
If you're going to pay back the loan in 30 years, 'ill make 279,767.35 in intrest over those 30 years... Pretty neat huh.... I'll almost double the amount i loaned out to you.
When a bank gives you a loan of 300.000 euro's, they don't have to have 300.000 on their books... They can just create "virtual money" which they loan out to you. IIRC, the percentage is actually a little less than 10%. So, a bank can have 30.000 on it's books, and still give out a 300.000 loan AND get 279.000 in intrest. They don't double their money, they actually multiply their investment by a factor >9...
It's downright criminal, but it's legal... This is why we need to be our own bank... If you don't own 300.000, you shouldn't be allowed to loan out 300.000.
Such money is called endogenous, but a bank cannot lend indefinitely because the ratio of bank loans to reserves is controlled by the central bank. And if the borrower does not pay, then the bank sells debts and reduces its reserves.