In this blog I share my views on everyday economic events to attract further discussion on the topic and make the issues more understandable to my students and the general public.
Saturday, November 27, 2010
Is Banking Always a Most Lucrative Business?
Banking is a most risky business, but at the same time it is also a most lucrative business. Here is my old post that tells a simple story about how banks make a lot of money. I want to hear more on this post from you.
Banks are such an important thing in the United States' economy. Because so many purchases are based on credit, banks are almost a necessity. Many Americans have become accustomed to a "have it now" lifestyle, learning to live beyond their means. Without banks, many are not able to achieve these kinds of lifestyles. Also, people use banks as a safe haven for their money, somewhere to save money and to gain interest while doing so. Houses are purchased through loans, known as mortgages, given by banks to consumers. Even small purchases such as televisions and other electronics are in need of banks. For example, Black Friday just passed. As we all know, there are many doorbuster sales. Without the availability of credit cards and a line of credit offered through the stores' bankers and financers, many could not afford to buy these electronics. As you can see, banks are needed, especially in American society where big houses, nice cars, and new technology all make up "The American Dream." Without banks and their money there would be no "American Dream" for many. Banks take advantage of this and charge high amounts of interest, keeping them a lucrative business.
Yes, I believe that banks will always be the top of the food chain, mainly because everyone has to use them. Especially in rough economic times we all use them and even big companies go to banks which these banks also will go to other banks. As long as they have these high interest rates their going to make alot of money and i dont think theres much we can do about it, we need them. Joel Ferguson
Although banks do make a large profit off of our loans, we need them just as much as they need us. Without banks to provide us with loans, many buisinesses would have no way of functioning because they would have no way of having the money they need to function and operate. Banks are also beneficial to their customers because although people who take out a loan must pay interest, the bank also pays interest to people who keep their money in the bank. I do understand that banks do make a lot of money from the people they are supposed to be trying to help, they also help a lot of people in different ways.
As Americans, we are used to living beyond our means. We buy things we cannot afford with cash, and as long as the use of credit card is still operating, banks will remain to generate profits. Banks are a fundamental to Americans’ ways of life. Without banks, more than half of Americans cannot afford to buy a home, a car, etc. If there are no banks, many businesses would also suffer, because during hard time, a loan from a bank could save or break a business.
Without banks the economy would suffer. Many businesses use loans during hard times to pull the company through. Americans use loans as well, we buy new houses and cars through the use of loans from the banks.
Banks in general get the opportunity to take the risk into their investments. Specifically speaking, banks are the targets of money. Whoever would save his money it would be a desposit in the bank. All of the options appear in a doable zone.
Take any kind of other investment for the firms and companies other than the banks. The first issue to be addressed in the capital and total assets, and from where to get the money aid. And plan how to repay. This issue would never be a problem to the banks. However, it is risky since banks would manipulate money that are not their also they have sort of obligations paying them back.
Now a days bank is very important to us. For many people it is unbelieveable that somebody would not have bank account. This is the safest place to deposit our money and also we can keep in track of our spending. Companies also need bank to take loan. So we do need bank but bank also need us to charge the high interest rate to keep its lucrative business on going.
yes banking will always be a lucrative business as long as people are making and needing money. people who are making money needs a place to store there money somewhere they feel safe which is a bank. and people who need money comes to banks for loans. banks give out loans and store money and they profit from the annual fees and interest fees. banks are always gonna be needed no matter what happens.
Yes, I think that banks will always be on top because 1st off they have a lot of investers and they don't really have nothing to loss. Mostly everybody now a days have at least a savings/checking account. So from my stand point banks are always be on top.
The idea of paper money is slowly going away. Most of the actual money in our economy, and the world, is credit. Banks are very important institutions which handle and transfer all the credit money in the economy so that we (regular people) don't have to. And, in doing all this tracking and transferring there is a lot of money to be made. Banks are so vital in America today, and with their vitality they become one of the most lucrative institutions available.
I believe that banks are always going to be on top of the ladder. That is because everyone uses them. Whether they use it to deposit money, make transfers, or take out a loan. People use them if they are making money or spending it. I read in an article that "banks can bring together the lenders and borrowers and offer suitable products to each party. They make money on the margin between the interest rates to which they pay savers and the interest rate they charge borrowers." And it doesn't seem like banks are just going to go out of business at a drop of a hat. Since people are always going to need a bank they are going to be on the top rungs of the ladder.
Banks are a very important thing to most of us today. Everyone needs to use the bank, whether its depositing money or getting money out. It's a way to help us save our money. However, it is a business because they charge us high interest rate for loans, which even large companies need.
Yes, I agree with you, Bank is most profitable business. We dicussed in class that how bank make money. Bank has to deposit some money to Fed as reserve. Remaining amount left in bank is used for making loans to common people. Bank charge hish interest rate on loans than it pay the interest to depositor. So in this way bank make lot of money. So according to me, Bank will always be on the top.
Banking involves the concept, "it takes money to make money." Banks are able to charge the rates they do and cause interest rates to fluctuate because they have the control over money. Power is money so when banks have more money then they have more power. Banking will always be a profitable business because the item (money) which is their product is being purchased with more of their item (money). It's a win-win for the banking system. All they have to do is retain the power by keeping the money in their banks. The only time people will pull their money from the bank is if they can receive a better interest rate from another bank. Otherwise the banks will offer great interest rates to the people with a lot of money in order to have their money to loan out to the people who need it. The banks can change their loan rates to whatever they want which is why they make such great profits. It's a lucrative business because more money means more profits.
I believe banks will always be near the top,if not the top on the Forbes' list. My reason for thinking this is because they are near the top during tough economic times and the economy is getting better. That means that banks will most likely make more money when the economy gets better and grows. Also other businesses borrow from the banks, when the interest rate is high, and the other businesses are performing well the banks will receive their money they loaned out and the interest that was accumulated on the loan for a given period of time. Even in tough economic times people take out loans to pay mortgages. That being said it would be hard to see any company or business ahead of banks on the Forbes' list.
Banks is the main aspect of todays society. Most people I know do not carry around money, bt they carry cards that have money in the bank. This is a safer way for people not to loose money if something bad was to happen; and also it is a good way to keep up with how much money you spend daily. But banks can also be a bad thing because sometimes banks get robbed, or the employees in the bank could make a mistake and misplace someones money in another account (mistakes happen). Overall banks are great aspects because it make purchase faster and safer, and makes things move faster and smoother without any conflict.
We need banks in this economy. They are essential to every day life. People need a place where they can safely protect their money and borrow money when needed. The average American does not have $200,000 saved to buy a house, they need mortgages. Banks themselves need to have borrowing rates so they can net profit to pay their employees, but they have gotten greedy. They know people need to borrow money, so they slowly increase rates so they can slowly make more money. If you have a legal way to increase your profits why wouldn't you do it? Regardless, I believe this is a problem. Banks are taking advantage of people and taking too much of their money. Still, there is not law that limits how much money a business can gross. I banks are smart they can make billions of dollars. This is a problem, but I don't see any way of changing it.
I think that banking is a great business for the economy to make money off of. The banks that give out loans always make their money back, and even receive a profit. When a bank gives out a loan they are basically investing their money in receiving more money. Loans that take longer to pay back gain more interest. I would have to say that banking is one of the most lucrative businesses.
Banks are a very risky business, because there is a lot of them and the competition is always quite strong. The United States has a population of 300 million, where millions of this population are always going to be in the work force with a regular yearly salary. Thus, they will need to store their money, somewhere safe, secure and also insured. Most if not all banks offer these benefits for costumers who have saving accounts and store money there. From a legal perspective it is also illegal to carry more than $10,000 dollars with you under regular bases. Having said that, again people will have no choice but to store their money in banks to avoid the risk of losing it, having it burned in a house or taken by the state if its kept cash at in amounts of over $10,000. So, individuals afraid of all these facts will always send their money to the banks. Then banks doing what they always do best (paying back very little interest to their costumers and charging very high interest on loans) will always make a significant profit.
Banks are in the business of selling money in the form of loans and other financial products. They earn money on the interest they charge on loans due to the fact that the interest is higher than the interest they pay on depositors' accounts. This poses some risk, but banks will always be very lucrative because people will always need money.
In a capitalist economy the goal of the producer or provider of services is to make profit. I believe that is exactly what Banks are doing. Banks aim to profit from every transaction that goes on between the itself and its costumers, and as we can see they are doing good job at it. I believe banks are filling a demand that is created in this high consumer society, as longs as banks remain an intermediary for our economy, the banking industry will continue to be a lucrative business.
Yes banking is a great idea in regards to lucrative business, if they continue to loan money with such high interest rates say for example 10 percent and if they have customers who are willing to borrow at such high rates and if they continue to do a lot of investments they will be in a good postion; what surprises me though while reading the post is how banks were able to be on top during the crisis, even though during the crisis we heard that banks weren't even making loans. As for the question if banks will remain in a top position am really not sure because nothing in life is certain.
Brittni Crawford Banks are very important to have they are #1 for alot of reasons. Banks takes risk for alot of people everyday by loaning money out and allowing the use of credit. i agree with the article "banks can bring together the lenders and borrowers and offer suitable products to each party." when you ask for a loan the banks take time to figure out if you are liable person or not and how much they will actually loan out to you, they always try to work with you if they can. anyway it goes banks makes money through high interest rates, so they really never have nothing to lose and puts them on top of alot of businesses.
I believe, that banks will always be among the top companies in the U.S. and in the world. They are the main financial intermediaries for every day people who need a place to get the money they need. The money that people make on their paychecks will get deposited in banks so that the money is safe. A large reason why banks make so much money is the fact that any money someone stores in a bank is safe. People trust a bank to keep all of their money safe so almost everyone uses banks. That is why banks are and always will be top companies.
I believe that banks will always be in business, they are one of the largest company's. Banks have various investors all around the world and many people believe banks will keep there money safe. also banks give out loans to people and other companies so i think banks will always be up on the top.
I believe that in the United States banks will always be an extremely important and profitable business. The use of banks and the loans they provide has been important to not only the formation of the U.S. economy, but the culture and lifestyle of most American's today. In order for businesses to form and turn profit most people looking to start a business need to take out a loan and without banks this would not be possible. The ability for banks to loan out money in essence fuels the economy because a majority of people today use a line of credit in one form or another. -Karolina Biernacka
Banking is very useful in America. Online banking is also a main priority of Americans. It is very convenient to pay bills and buy things without leaving home. it also helps to manage money when having a bank account. -Darrell Rich
I believe that the banks will always be important because everyone uses them. The banks are used to make deposits and loans to people that need them. Without banks it would make it harder for businesses to make transactions needed to make the business successful.
What makes banks make huge profits is the importance of their products which became absolutely vital to our personal happiness, our future success, and well-being of the communities where we live. In addition, banks are superior in marketing their products to the public like for example credit card idea, do you know that Bank of America income from card in 2009 was 8,353$ million!
I believe banks will remain on the top positions if their products still important to the public and they keep their superior marketing ways.
In short, yes, banks will always remain in the top position. This is due to the human condition which entails several characteristics which greed is an example of. In most cases when a chance is provided to gain money or power, people will take this opportunity. The larger the reward the larger the amount of risk people will take. Not everyone may be pleased that a particular individual has taken this opportunity but there is an underling acceptance of this behavior which can be partially attributed to the understanding of risk which most people possess. This explains how banks are able to continue to remain on top.
There are exceptions to this. One good example is The Grameen Bank started by Muhammad Yunus. This bank provides microcredit which holds more risk at a higher operating cost. The risk comes from the cliental the bank deals with (the poor). The raised operating cost come from the amount of transactions carried out as compared to a traditional institution for a set amount to loan out. In example, if two banks provided loans at the same rate and they both had $1000 to loan, the only difference being that one bank loaned the full amount to one client and the other made 100 loans to 100 clients for $10, the cost of processing and tracking all the additional loans would raise operating cost of the second bank. This is not a typical format of banking. A bank that operates like this can still profit however it will not be able to maintain a position on top.
I think banks should be able to profit so then they'll be a little more willing to give loans to a wider base but they the more profits they receive doesn't necessarily means that loan interest rates will be lower.
Banks will always be a successful money making business. And the reason is simple. Because people will always need money. And they will always need someplace safe to keep their money. With all the new technologies, using cash for everything is becoming less popular. Checks, Money Orders, Wires, Credit Cards, etc. are easier for people to access money. And all of these things are handled through the bank. With all the money that they make through deposits and fees, they are able to give out loans, which people will always need. They make a generous amount from all the interest and fees they charge.
I think that banks will always be successful. People will always be putting money in banks and taking out loans. As long as banks keep issuing loans at higher interest rates than deposit rates they will continue to make enormous profits. Until people put their money elsewhere banks will always be successful no matter how good or bad the economy is doing.
I think that we definately need banks in this economy. They are a vital part, and without them the economy would suffer greatly. They are the main financial intermediate.
banks are an important part of our economy and I think they will always be on top because they are an easy way of keeping money safe and obtaining loans. and because of the fact that they continued to be on top during the recession we just got out of is a easy to see that it will be very hard for banks to move from that top spot and you can tell that people find them useful.
I think banking will always remain profitable because it is the medium of exchange between investors and entrepreneurs. There aren't too many other places that a person can walk in and walk out with a 10K loan. Personally, I don't think banking is a risky business. For the most part, if the economy is going well, then businesses pay back their loans, and banks make a profit. Only when the economy isn't going well (which is a rarity in the US economy), banks lose money.
Banks will always play an important role in our economy. The banking system have various ways to profit from its members to keep the business blooming. Despite the fact that banks are risky they are needed.
I believe that banks will always play a key role in the economy. Society depends on banks and financial institutions for so many things. We use banks to save and hold our money. We use them for investment purposes such as retired savings plans and educational savings plans. We use banks for credit and loans such as VISA cards, car loans, and mortgages. It's no wonder why banks are so profitable. The economy and society rely on them.
Banks will always be considered one of the most Lucrative businesses because they are the ones to bet big (in terms of money) which usually equates to big earnings. They always be a major staple in the economy because they takes the biggest risk with people and loans.
I believe that banks will always be at the top because they have become a major necessity for most people in the country. There isn't a day where a person doesn't use a bank for at least one thing, whether it be a loan, or a simple deposit or withdrawal at their local bank. They might be risky, but as far as i'm concerned, people are willing to take the risk because of the fact that they have become part of our daily lives.
Americans have to change their attitude and way of life if banks will play less of an impacting role in how much money they make and how much we spend. Americans have an attitude that bigger is better, "I want the house bigger than my neighbor" or "I want a better looking car". These materialistic values are not affordable in most Americans financial budget. What is a race to the top, is really a race to the bottom. Banks will continue to make money just like Apple will continue making money off of Ipods, we ultimately control the market and our habits need to be redefined if banks are going to make less profit.
Where do banks stand in the economic crisis? Banks are the heart of economic crisis. In my opinion, banks manipulate the economy in a since that force people to adjust with their rules; therefore, banks will always top any other competitive firms because they are widely trusted by people and most importantly they are backed up by the government. The reason why I mentioned this is because banks offer security and other factors that cannot be supplied by any other firms. As a result, it will be the best place for people to invest in.
I believe that even at crucial economic times banks are a very important piece to our economy. Without bank loans many small businesses and large businesses alike would not be able to start with out them starting our economy would fail, also many people use bank loans to go to college and to help fund a mortgage. So while banks may make a large amount of money from charging us interest they also provide loans to help us start businesses, to help us go to school, to help us get a home, or a loan for anything. As well as a safe haven for us to keep our money at, and pay our bills. So I believe that they will always be very important.
Telisha Degree
ReplyDeleteBanks are such an important thing in the United States' economy. Because so many purchases are based on credit, banks are almost a necessity. Many
Americans have become accustomed to a "have it now" lifestyle, learning to live beyond their means. Without banks, many are not able to achieve these kinds of lifestyles. Also, people use banks as a safe haven for their money, somewhere to save money and to gain interest while doing so. Houses are purchased through loans, known as mortgages, given by banks to consumers. Even small purchases such as televisions and other electronics are in need of banks. For example, Black Friday just passed. As we all know, there are many doorbuster sales. Without the availability of credit cards and a line of credit offered through the stores' bankers and financers, many could not afford to buy these electronics. As you can see, banks are needed, especially in American society where big houses, nice cars, and new technology all make up "The American Dream." Without banks and their money there would be no "American Dream" for many. Banks take advantage of this and charge high amounts of interest, keeping them a lucrative business.
Yes, I believe that banks will always be the top of the food chain, mainly because everyone has to use them. Especially in rough economic times we all use them and even big companies go to banks which these banks also will go to other banks. As long as they have these high interest rates their going to make alot of money and i dont think theres much we can do about it, we need them.
ReplyDeleteJoel Ferguson
Although banks do make a large profit off of our loans, we need them just as much as they need us. Without banks to provide us with loans, many buisinesses would have no way of functioning because they would have no way of having the money they need to function and operate. Banks are also beneficial to their customers because although people who take out a loan must pay interest, the bank also pays interest to people who keep their money in the bank. I do understand that banks do make a lot of money from the people they are supposed to be trying to help, they also help a lot of people in different ways.
ReplyDeleteAs Americans, we are used to living beyond our means. We buy things we cannot afford with cash, and as long as the use of credit card is still operating, banks will remain to generate profits. Banks are a fundamental to Americans’ ways of life. Without banks, more than half of Americans cannot afford to buy a home, a car, etc. If there are no banks, many businesses would also suffer, because during hard time, a loan from a bank could save or break a business.
ReplyDeleteWithout banks the economy would suffer. Many businesses use loans during hard times to pull the company through. Americans use loans as well, we buy new houses and cars through the use of loans from the banks.
ReplyDeleteBanks in general get the opportunity to take the risk into their investments. Specifically speaking, banks are the targets of money. Whoever would save his money it would be a desposit in the bank. All of the options appear in a doable zone.
ReplyDeleteTake any kind of other investment for the firms and companies other than the banks. The first issue to be addressed in the capital and total assets, and from where to get the money aid. And plan how to repay. This issue would never be a problem to the banks. However, it is risky since banks would manipulate money that are not their also they have sort of obligations paying them back.
Now a days bank is very important to us. For many people it is unbelieveable that somebody would not have bank account. This is the safest place to deposit our money and also we can keep in track of our spending. Companies also need bank to take loan. So we do need bank but bank also need us to charge the high interest rate to keep its lucrative business on going.
ReplyDeleteyes banking will always be a lucrative business as long as people are making and needing money. people who are making money needs a place to store there money somewhere they feel safe which is a bank. and people who need money comes to banks for loans. banks give out loans and store money and they profit from the annual fees and interest fees. banks are always gonna be needed no matter what happens.
ReplyDeleteNataiya Taliaferro
Yes, I think that banks will always be on top because 1st off they have a lot of investers and they don't really have nothing to loss. Mostly everybody now a days have at least a savings/checking account. So from my stand point banks are always be on top.
ReplyDeleteTalya Arrington
The idea of paper money is slowly going away. Most of the actual money in our economy, and the world, is credit. Banks are very important institutions which handle and transfer all the credit money in the economy so that we (regular people) don't have to. And, in doing all this tracking and transferring there is a lot of money to be made.
ReplyDeleteBanks are so vital in America today, and with their vitality they become one of the most lucrative institutions available.
Adam Kirvan
I believe that banks are always going to be on top of the ladder. That is because everyone uses them. Whether they use it to deposit money, make transfers, or take out a loan. People use them if they are making money or spending it. I read in an article that "banks can bring together the lenders and borrowers and offer suitable products to each party. They make money on the margin between the interest rates to which they pay savers and the interest rate they charge borrowers." And it doesn't seem like banks are just going to go out of business at a drop of a hat. Since people are always going to need a bank they are going to be on the top rungs of the ladder.
ReplyDelete-Bindiya Patel
Banks are a very important thing to most of us today. Everyone needs to use the bank, whether its depositing money or getting money out. It's a way to help us save our money. However, it is a business because they charge us high interest rate for loans, which even large companies need.
ReplyDeleteExcellent job guys! You have made so good points.
ReplyDeleteBamadev
Yes, I agree with you, Bank is most profitable business. We dicussed in class that how bank make money. Bank has to deposit some money to Fed as reserve. Remaining amount left in bank is used for making loans to common people. Bank charge hish interest rate on loans than it pay the interest to depositor. So in this way bank make lot of money. So according to me, Bank will always be on the top.
ReplyDeleteKena Patel
Banking involves the concept, "it takes money to make money." Banks are able to charge the rates they do and cause interest rates to fluctuate because they have the control over money. Power is money so when banks have more money then they have more power. Banking will always be a profitable business because the item (money) which is their product is being purchased with more of their item (money). It's a win-win for the banking system. All they have to do is retain the power by keeping the money in their banks. The only time people will pull their money from the bank is if they can receive a better interest rate from another bank. Otherwise the banks will offer great interest rates to the people with a lot of money in order to have their money to loan out to the people who need it. The banks can change their loan rates to whatever they want which is why they make such great profits. It's a lucrative business because more money means more profits.
ReplyDelete--Ann Esshaki
I believe banks will always be near the top,if not the top on the Forbes' list. My reason for thinking this is because they are near the top during tough economic times and the economy is getting better. That means that banks will most likely make more money when the economy gets better and grows. Also other businesses borrow from the banks, when the interest rate is high, and the other businesses are performing well the banks will receive their money they loaned out and the interest that was accumulated on the loan for a given period of time. Even in tough economic times people take out loans to pay mortgages. That being said it would be hard to see any company or business ahead of banks on the Forbes' list.
ReplyDeleteAjdin Alic
This comment has been removed by the author.
ReplyDeleteBanks is the main aspect of todays society. Most people I know do not carry around money, bt they carry cards that have money in the bank. This is a safer way for people not to loose money if something bad was to happen; and also it is a good way to keep up with how much money you spend daily. But banks can also be a bad thing because sometimes banks get robbed, or the employees in the bank could make a mistake and misplace someones money in another account (mistakes happen). Overall banks are great aspects because it make purchase faster and safer, and makes things move faster and smoother without any conflict.
ReplyDeleteWe need banks in this economy. They are essential to every day life. People need a place where they can safely protect their money and borrow money when needed. The average American does not have $200,000 saved to buy a house, they need mortgages. Banks themselves need to have borrowing rates so they can net profit to pay their employees, but they have gotten greedy. They know people need to borrow money, so they slowly increase rates so they can slowly make more money. If you have a legal way to increase your profits why wouldn't you do it? Regardless, I believe this is a problem. Banks are taking advantage of people and taking too much of their money. Still, there is not law that limits how much money a business can gross. I banks are smart they can make billions of dollars. This is a problem, but I don't see any way of changing it.
ReplyDeleteI think that banking is a great business for the economy to make money off of. The banks that give out loans always make their money back, and even receive a profit. When a bank gives out a loan they are basically investing their money in receiving more money. Loans that take longer to pay back gain more interest. I would have to say that banking is one of the most lucrative businesses.
ReplyDeleteAstrit Mehmeti
ReplyDeleteBanks are a very risky business, because there is a lot of them and the competition is always quite strong. The United States has a population of 300 million, where millions of this population are always going to be in the work force with a regular yearly salary. Thus, they will need to store their money, somewhere safe, secure and also insured. Most if not all banks offer these benefits for costumers who have saving accounts and store money there. From a legal perspective it is also illegal to carry more than $10,000 dollars with you under regular bases. Having said that, again people will have no choice but to store their money in banks to avoid the risk of losing it, having it burned in a house or taken by the state if its kept cash at in amounts of over $10,000. So, individuals afraid of all these facts will always send their money to the banks. Then banks doing what they always do best (paying back very little interest to their costumers and charging very high interest on loans) will always make a significant profit.
Banks are in the business of selling money in the form of loans and other financial products. They earn money on the interest they charge on loans due to the fact that the interest is higher than the interest they pay on depositors' accounts. This poses some risk, but banks will always be very lucrative because people will always need money.
ReplyDeleteAnthony Vitale
In a capitalist economy the goal of the producer or provider of services is to make profit. I believe that is exactly what Banks are doing. Banks aim to profit from every transaction that goes on between the itself and its costumers, and as we can see they are doing good job at it. I believe banks are filling a demand that is created in this high consumer society, as longs as banks remain an intermediary for our economy, the banking industry will continue to be a lucrative business.
ReplyDeleteLeyia Getachew
Yes banking is a great idea in regards to lucrative business, if they continue to loan money with such high interest rates say for example 10 percent and if they have customers who are willing to borrow at such high rates and if they continue to do a lot of investments they will be in a good postion; what surprises me though while reading the post is how banks were able to be on top during the crisis, even though during the crisis we heard that banks weren't even making loans. As for the question if banks will remain in a top position am really not sure because nothing in life is certain.
ReplyDeleteStacy Gayle
Brittni Crawford
ReplyDeleteBanks are very important to have they are #1 for alot of reasons. Banks takes risk for alot of people everyday by loaning money out and allowing the use of credit. i agree with the article "banks can bring together the lenders and borrowers and offer suitable products to each party." when you ask for a loan the banks take time to figure out if you are liable person or not and how much they will actually loan out to you, they always try to work with you if they can. anyway it goes banks makes money through high interest rates, so they really never have nothing to lose and puts them on top of alot of businesses.
Brittni Crawford
I believe, that banks will always be among the top companies in the U.S. and in the world. They are the main financial intermediaries for every day people who need a place to get the money they need. The money that people make on their paychecks will get deposited in banks so that the money is safe. A large reason why banks make so much money is the fact that any money someone stores in a bank is safe. People trust a bank to keep all of their money safe so almost everyone uses banks. That is why banks are and always will be top companies.
ReplyDelete-Eric Platte
I believe that banks will always be in business, they are one of the largest company's. Banks have various investors all around the world and many people believe banks will keep there money safe. also banks give out loans to people and other companies so i think banks will always be up on the top.
ReplyDeleteI believe that in the United States banks will always be an extremely important and profitable business. The use of banks and the loans they provide has been important to not only the formation of the U.S. economy, but the culture and lifestyle of most American's today. In order for businesses to form and turn profit most people looking to start a business need to take out a loan and without banks this would not be possible. The ability for banks to loan out money in essence fuels the economy because a majority of people today use a line of credit in one form or another.
ReplyDelete-Karolina Biernacka
Banking is very useful in America. Online banking is also a main priority of Americans. It is very convenient to pay bills and buy things without leaving home. it also helps to manage money when having a bank account.
ReplyDelete-Darrell Rich
I believe that the banks will always be important because everyone uses them. The banks are used to make deposits and loans to people that need them. Without banks it would make it harder for businesses to make transactions needed to make the business successful.
ReplyDeleteBina Patel
What makes banks make huge profits is the importance of their products which became absolutely vital to our personal happiness, our future success, and well-being of the communities where we live. In addition, banks are superior in marketing their products to the public like for example credit card idea, do you know that Bank of America income from card in 2009 was 8,353$ million!
ReplyDeleteI believe banks will remain on the top positions if their products still important to the public and they keep their superior marketing ways.
Ahmad Alkadeeb
In short, yes, banks will always remain in the top position. This is due to the human condition which entails several characteristics which greed is an example of. In most cases when a chance is provided to gain money or power, people will take this opportunity. The larger the reward the larger the amount of risk people will take. Not everyone may be pleased that a particular individual has taken this opportunity but there is an underling acceptance of this behavior which can be partially attributed to the understanding of risk which most people possess. This explains how banks are able to continue to remain on top.
ReplyDeleteThere are exceptions to this. One good example is The Grameen Bank started by Muhammad Yunus. This bank provides microcredit which holds more risk at a higher operating cost. The risk comes from the cliental the bank deals with (the poor). The raised operating cost come from the amount of transactions carried out as compared to a traditional institution for a set amount to loan out. In example, if two banks provided loans at the same rate and they both had $1000 to loan, the only difference being that one bank loaned the full amount to one client and the other made 100 loans to 100 clients for $10, the cost of processing and tracking all the additional loans would raise operating cost of the second bank. This is not a typical format of banking. A bank that operates like this can still profit however it will not be able to maintain a position on top.
-Rafael Schaffa
I think banks should be able to profit so then they'll be a little more willing to give loans to a wider base but they the more profits they receive doesn't necessarily means that loan interest rates will be lower.
ReplyDeleteBecky Sweeney
Banks will always be a successful money making business. And the reason is simple. Because people will always need money. And they will always need someplace safe to keep their money. With all the new technologies, using cash for everything is becoming less popular. Checks, Money Orders, Wires, Credit Cards, etc. are easier for people to access money. And all of these things are handled through the bank. With all the money that they make through deposits and fees, they are able to give out loans, which people will always need. They make a generous amount from all the interest and fees they charge.
ReplyDeleteI think that banks will always be successful. People will always be putting money in banks and taking out loans. As long as banks keep issuing loans at higher interest rates than deposit rates they will continue to make enormous profits. Until people put their money elsewhere banks will always be successful no matter how good or bad the economy is doing.
ReplyDelete-Ryan Katz
I think that we definately need banks in this economy. They are a vital part, and without them the economy would suffer greatly. They are the main financial intermediate.
ReplyDelete-Katelyn Lubaway
banks are an important part of our economy and I think they will always be on top because they are an easy way of keeping money safe and obtaining loans. and because of the fact that they continued to be on top during the recession we just got out of is a easy to see that it will be very hard for banks to move from that top spot and you can tell that people find them useful.
ReplyDeleteKim Brooks
I think banking will always remain profitable because it is the medium of exchange between investors and entrepreneurs. There aren't too many other places that a person can walk in and walk out with a 10K loan. Personally, I don't think banking is a risky business. For the most part, if the economy is going well, then businesses pay back their loans, and banks make a profit. Only when the economy isn't going well (which is a rarity in the US economy), banks lose money.
ReplyDeleteBanks will always play an important role in our economy. The banking system have various ways to profit from its members to keep the business blooming. Despite the fact that banks are risky they are needed.
ReplyDelete-Alyssia Jernigan
I believe that banks will always play a key role in the economy. Society depends on banks and financial institutions for so many things. We use banks to save and hold our money. We use them for investment purposes such as retired savings plans and educational savings plans. We use banks for credit and loans such as VISA cards, car loans, and mortgages. It's no wonder why banks are so profitable. The economy and society rely on them.
ReplyDelete- Andrew Joseph
Banks will always be considered one of the most Lucrative businesses because they are the ones to bet big (in terms of money) which usually equates to big earnings. They always be a major staple in the economy because they takes the biggest risk with people and loans.
ReplyDelete- Donald McDowell
I believe that banks will always be at the top because they have become a major necessity for most people in the country. There isn't a day where a person doesn't use a bank for at least one thing, whether it be a loan, or a simple deposit or withdrawal at their local bank. They might be risky, but as far as i'm concerned, people are willing to take the risk because of the fact that they have become part of our daily lives.
ReplyDelete-Rita Murillo
Americans have to change their attitude and way of life if banks will play less of an impacting role in how much money they make and how much we spend. Americans have an attitude that bigger is better, "I want the house bigger than my neighbor" or "I want a better looking car". These materialistic values are not affordable in most Americans financial budget. What is a race to the top, is really a race to the bottom. Banks will continue to make money just like Apple will continue making money off of Ipods, we ultimately control the market and our habits need to be redefined if banks are going to make less profit.
ReplyDelete-Simon Foster
Where do banks stand in the economic crisis? Banks are the heart of economic crisis. In my opinion, banks manipulate the economy in a since that force people to adjust with their rules; therefore, banks will always top any other competitive firms because they are widely trusted by people and most importantly they are backed up by the government. The reason why I mentioned this is because banks offer security and other factors that cannot be supplied by any other firms. As a result, it will be the best place for people to invest in.
ReplyDeleteI believe that even at crucial economic times banks are a very important piece to our economy. Without bank loans many small businesses and large businesses alike would not be able to start with out them starting our economy would fail, also many people use bank loans to go to college and to help fund a mortgage. So while banks may make a large amount of money from charging us interest they also provide loans to help us start businesses, to help us go to school, to help us get a home, or a loan for anything. As well as a safe haven for us to keep our money at, and pay our bills. So I believe that they will always be very important.
ReplyDelete