what are the main source of income of banks?
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Banks generally make money by borrowing money from depositors and compensating them with a certain interest rate. ... The banks will lend the money out to borrowers, charging the borrowers a higher interest rate, and profiting off the interest rate spread.
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The main source of income for banks is the difference between interest rate charged from borrowers and what is paid to depositors. After keeping a portion of deposits as reserves banks lend to people who demand money as loan and bank charges interest from them.
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