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Posts Tagged ‘banks’

HOW DO BANKS MAKE MONEY?

TweetShareHOW DO BANKS MAKE MONEY? Banks are like any other regulated business; the product they deal with is “Money”. So they borrow money from individual or businesses “who have money”, and lend it to those “who need money”, by adding a mark up, to pay for expenses and profit. The difference between the rates, which banks offer to depositors and lenders, is generally referred to as “Spread”. Understandably,the spread in this business is low; hence increasing the turnover (volume)... 

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