Question

how bank earn profit ​

Answer 1

Hello.....

The banks lend money to customers at a higher rate than they pay to depositors or than they borrow it. The difference, known as the margin or turn, is kept by the bank.

For example, if a bank pays 1% interest on deposits, they may charge 6% interest on loans.

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Answer 2

As mentioned before, banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own, and pay interest on deposits, CDs,