How do Banks Make Money? Explanation, Examples
Peak Frameworks
OCTOBER 30, 2023
It's also why banks are so eager to have deposits; they're the cheapest form of capital for them. Loan Origination or Service Fees: This is a one-time fee charged by the bank when initiating a new loan, serving as a setup fee for the loan process. Trading and Proprietary Trading Many large banks are involved in trading activities.
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