Question

What is the main source of income of Banks ?

Answer 1

loan is the main source of income of bank

Answer 2

Answer:

The bank's primary source of revenue is from interest on various loans and advances to industries, corporations, and people.

Explanation:

• Various loans and advances are provided by banks to industries, corporations, and individuals. Their primary source of income is interest on these loans.
• For services such as syndication of loans, receiving bills of exchange, providing safety vaults, and so on, banks charge fees to their customers.
• Banks also engage in foreign exchange and function as brokers, generating revenue from the transactions.
• Banks invest in a variety of government and graded assets in order to generate interest and dividends.
• Banks make money from commissions by selling insurance and mutual fund products to its customers.