A bank is a financial institution that provides financial services to people. They are licensed to receive all the deposits and provide loans.
Banks make money by borrowing it from depositors and compensating that borrowed amount with a certain interest rate. Banks sell their money in the form of loans that they provide to common people.
The interest rate which they charge on individuals while taking a loan is very much higher than the interest which they have to give in the depositor's account.
Banks also charge money for the services which they provide.
How do Banks Earn Profits?
Banks earn profits in various ways.
According to Bloomberg, the merchants pay $100 billion in interchange fees annually.
Some examples are:-
So by the above-mentioned points, the bank makes money.
In a major victory for law enforcement agencies around the world, a recent operation took down one of the largest dark web drug marketplaces, disrupting a major source of illegal drug distribution. Th...
Read More..The First Republic Bank, one of the largest private banks in the United States, is currently in a state of limbo as federal regulators juggle its fate. The bank is facing scrutiny from both the Federa...
Read More..Toronto stock futures are lower, and the TSX lost 0.5% to close at 12,694. The index has now been in a bear market for 11 weeks. Crude oil, gold and copper have all fallen sharply as investors have du...
Read More..Ford is planning to boost its North American production by 2 percent in the first half of 2020, according to Reuters, as the company looks to make up for lost sales from General Motors Co. and Fiat Ch...
Read More..