Ways from which banks are making Money

Do you know how and on what banks earn? Everyone uses money. We get them, spend, try to save, some even try to make money. One way or another, everyone at one time interacts with the bank. Namely banks, a link in the interaction of monetary relations. The fact that huge profit is concentrated there is a fact. But where does it come from, the majority only guesses? Of course, many will say that the main profit of www.banesco formed due to the difference between loans issued and attracted deposits. And they will be right. But in addition to this, banks receive income from many other financial transactions. We will analyze in detail the main ways to benefit from the banking sector.


Credit and Deposit Policy

You need to start understanding the issue from the basics, that is, from the ratio of loans and deposits. Bank – a credit organization that attracts money from individuals and legal entities for a fee. The funds accepted as a deposit are issued in the form of a loan to another client, who undertakes to return them within the period specified in the contract. At the same time, the borrower pays interest to bdv en linea on borrowed money. The bank earns on the difference in interest rates. For example, an individual’s deposit was placed at a rate of 7% per annum. A loan for the same amount was issued at 19% per annum. We get 12% of bank income. Of these funds, the costs of maintaining the office, the salary of employees are paid, but most of it falls into the bank’s profit. A credit institution sets interest rates, guided not only by the desire to earn but also by the refinancing rate of the Central Bank of the Russian Federation. That is the rate at which the bank itself can take a loan from the Central Bank. In our country, the refinancing rate is equal to the key rate, which reached 8.25% on October 27, 2017. The bank cannot issue a loan at a rate lower than the key. In Russia, it is even difficult to imagine a situation where the cost of a loan would be close to this rate. Just try something new here

The bank may raise funds at a low interest rate:

  • deposits of individuals;
  • loan from the bicentenario;
  • lending at a lower interest rate in other countries (it was especially popular before the crisis). And use them for their own purposes, earning on the difference in interest rates (lending) and other financial transactions.

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