Traditional Culture Encyclopedia - Traditional festivals - What do banks make money from?
What do banks make money from?
Banking belongs to the financial industry. The task of the financial industry is to match the surplus with the demanders. The demander lends money and pays corresponding interest, and the bank helps both parties to complete the transaction. Therefore, it is necessary to extract a certain proportion from it and form your own income. This is the most traditional profit model of banks, that is, buy low and sell high.
In addition to the above, banks also have trust business income, securities trading income and third-party custody income. In addition, they will also charge agency fees, consulting fees, free guarantee fees, management fees, handling fees and so on. Although the individual charges are not high, with the huge number of users and frequent operation of users, the income brought by these rates and interest rates is also considerable.
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