Bank income vs return
The main source of income for banks are from loans, isn’t it? I wonder, when they charge 6-8% (say) per annum for consumer loans, how can Bank Rakyat give 15-20% returns per annum to their members? Or do they charge higher interest/profit rate for commercial loans? Well, credit card uses are charged 15-18% per annum. Do banks have other sources of income? Usually banks use the cash deposited by account holders to give out loans (and the banks would come out with all sorts of promotions to attract people to keep their money with them), and in return depositors gets 1% (or is it less?), or in the case of FD 3%ish. But of course the members of Bank Rakyat are a different case altogether, they are like shareholders, maybe. But still. Well, this is perhaps too simplistic a way of looking at the bank industry, which I don’t know much about, but I can still ‘wonder’, can’t I?
7 comments:
mynie dear, bank tak byk dpt income dari consumer macam kita. that's why investment banking play a major role. they can get billions from investments. kalau bergantung pd consumer sahaja, mmglah ciput :). you can have a look at bank's annual report. take a look at consumer banking portion..
ummu auni,
thanks for your insight into the banking industry :)
banking buat investment ni cmn ye, dia buat analysis and then beli saham ke, atau directly venture dgn companies tu? semua banks ke ada ni, yg selalu dgr mcm deutsche bank etc, yg gaji analyst dia tinggi2.. i suppose semua bank ada kot, cuma sikit byk je..
p/s: rindu nak baca blog ummu auni. invite lah saya :)
don't forget, banks also lend to each other.
investment banking ni selalu dpt project dari tender, usually involvement dengan big companies yang perlukan loan/advisory esp regarding profit swap.
contoh ada companies nak mencari keuntungan, and they don't know how to make money from profit/interest swap. jadi banks play a major role sbg intermediary, for example kalau ada 2 companies approac the bank, banks will analyse which situations will benefit most, including the banks. bank pun ambillah portion sikit as intermediary.
yes analyst gaji selalu tinggi, play a major role dlm hala tuju bank, which to venture in and all that stuffs. investment banking pun besar portion dia, sekali menang tender boleh dpt juta2...padanlah dgn kerja teruk kan.
p/s insya Allah, please be patient, tunggu bulan 6 ye. am currently observing certain period.
zzeed,
kalau A lend to B, B lend to A, sedikit pelik. tp kalau A lend to B & C, then boleh pahamlah..
ummu auni,
oooo gitu.. dpt ilmu baru. thanks :)
banking ni banyak business model. either consumer/corporate/investment banking can make a lot of money with good risk management, targeted portfolio & branding too. also, depend on which market jugak. in china and some asian countries still can enjoy 'double-digit' return, kalau us tu maybe susah sikit sbb market dh quite matured; but still possible.
mommy lyna,
wah sgt complicated this banking industry. and yet ada gak org question apesal islamic banks still kena charge profit rate bila bagi loan haha..
Post a Comment