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Commercial Banks make profit and generate revenue by two ways:
- By charging you a fee for the services they provide you
- By lending the money you have deposited into your account, to other loan customers and getting an interest on the same.
Interest income is the highest revenue and profit generator for any bank.
Wiki User
∙ 13y ago
Wiki User
∙ 9y agoCommercial banks rate credit for businesses on many factors. Some factors include company revenue, company credit scores, and the ability to pay off ones debts.
Wiki User
∙ 10y agoThey mobilize huge funds from the public, business houses and in turn extend loan to industries, government, thus generating money in the national economy.
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What are the importance of banks in the economy?
Banks do not create any money. It only borrow and lend money from their customers. Banks are very important to economy because if bank have certain amount with them then bank can invest in other sectors. which will help in long term by giving them return. Banks have a certain team to do that.
Commercial banks and their relationship with the reserve bank?
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
Role of commercial banks in developing countries?
The can help to grow the country. They will provide money to the growing government along with issue money to the people to use to grow the economy.
Pet banks and their affect on economy?
it made our economy way better than it ever was yayy money money money!
Can a single bank create money?
Banks do not create money. They store it. The government prints money.
How do banks help expand the economy?
by loaning money
Who starts banks?
A commercial bank is started by private investor(s), since a commercial bank's primary goal is to make profit by earning interest from loaning out money. The Federal Reserve Banks, or any other countries central banks like the Bank of England, are owned by the government and are created as a central bank to make sure the economy is healthy by controlling the money supply, regulating banks, etc.
How can marketing concept be applied in commercial banks?
get money.
What does the Fed do for commercial banks?
The main thing the Fed does is that it is the Bank that Banks deposit their money in.
How commercial banks create money?
Commercial Banks make profit and generate revenue by two ways:By charging you a fee for the services they provide youBy lending the money you have deposited into your account, to other loan customers and getting an interest on the same.Interest income is the highest revenue and profit generator for any bank.
What time value of money applications are used by commercial banks?
Time, is Money
Banks create money by lending but that can't yield them any profit cause they can only receive back money they themselves created Why don't the banks keep all the money they create for themselves?
Your grasp of economics and commerce is flawed. Banks do make a profit on the money they lend, a great deal of it. It is called interest. Nor do banks 'create' money.
