How does banks earn money?

Question

Accepted Answer

Banks earn money through various sources such as interest on loans, fees for services, and investments.

Interest on loans: Banks earn money by charging interest on the loans they provide to individuals and businesses.
Fees for services: Banks charge fees for various services such as account maintenance, ATM usage, and wire transfers.
Investments: Banks invest the money deposited by customers and earn returns on those investments.
Credit card interest: Banks earn money through the interest charged on credit card balances.
Foreign exchange: Banks make money through currency exchange services and fees.
Investment banking: Banks earn fees by providing advisory services, underwriting securities, and facilitating mergers and acquisitions.

Accepted Answer

Bank use the money from depositer &give the laon who have the needed and charge the int

Accepted Answer

Borrowing money from depositores and compensating them with a certain intrest rate.

Popular interview questions of KYC Analyst