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By lending money and charging interest.
A bit more:
Banks also make money by investing the money of their depositors at a higher paying intesest rate than what they pay their depositors. For example, if they pay me 1% interest on the money I have in their bank, they then invest that money for more than the 1% they pay me.
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∙ 12y ago
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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
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.
What time value of money applications are used by commercial banks?
Time, is Money
How much money do bank owners make a year?
Do you mean commercial banks or investment banks?
What methods do commercial banks use to advance money to customers?
sex
What is the role of commercial banks in ethiopian?
process of payment, common money market,issue money
How can you control the liquidity in system with CRR?
With Cash Reserve Ratio the Commercial Banks can keep money in Central Bank. So that amount of money keeps intact coz the commercial bank do not retain that with themselves. So if in a case the commercial banks need money they can easily opt for the aforesaid invested money with central bank.
The main functions of the National Bank of Ethiopia?
To license & supervise banks & hold commercial banks reserves & lend money to them.
Which institutional lenders commonly makes short-term construction loans?
commercial banks
Which institutional lender commonly makes short-term construction loans?
commercial banks
As commercial banks keep more excess reserves, what happens to money creation?
It decreases.
