Any idea?

[Nate11]

How does the banking sector make their profits?

[laughingburger]

How does the banking sector make their profits?

I think banking sector make their money through the money that investors invest in them and give them a small cut out of the big cut they earn from bank investments.

[pragna]

How does the banking sector make their profits?

I could not understand why you ask this question in crypto market. Bank make their profits in different way. they give loans, speed money to another banks, invest in share market or many other sectors to gain profit. you can take google tour to know it.

[laughingburger]

How does the banking sector make their profits?

I could not understand why you ask this question in crypto market. Bank make their profits in different way. they give loans, speed money to another banks, invest in share market or many other sectors to gain profit. you can take google tour to know it.

Since we can see that TS is a snr member he won't be asking a question for nothing, i believe he have a more deep thought on this banking profit.

[Cryptoniko]

Bank's income can be classified into two -

A) Interest income
B) Non-interest income

Interest income sources are the ones on which bank earns interest - Interest from loans & credit card

Non-interest income sources are ones which do not earn interest but generates income, for e.g. DD commission, locker rent, etc. It also consists of income from non-banking products like Insurance (Life & Health both), Mutual Fund and commission from iIvestment Advisory.

[Annalise]

I think they make profit by receiving deposits from lenders at a little interest rate and then giving this money from lenders as a loan to borrowers whopay outrageous interest rate.

[laughingburger]

I think they make profit by receiving deposits from lenders at a little interest rate and then giving this money from lenders as a loan to borrowers whopay outrageous interest rate.

This is one of the more direct way that many will think how will bank make profit from but i suppose they make the most profit through investing using big amount of funds from their customers and paying them a small part of the profit they make to them.

[giovannucchi]

Banks receive money by operation as fees and loaning money depending by the national laws.

[Citysatoshi]

In common terms, a bank’s fundamental business is borrowing and lending money. Their earnings comprise of the interest that they earn from independent customers.