| In order for any bank to survive without relying on | | | | charge a high interest rate that will buffer the credit |
| liquidity measures like state intervention to salvage it, it | | | | consequences in case of loss. In this manner a bank |
| must make profit from several sources. Commercial | | | | can make a high profit when external factors remain |
| banks make their money from diverse schemes like | | | | the same and the customer makes good his |
| investment, credit interest rates and the use of their | | | | repayment. |
| own banking fees and for cards that they charge their | | | | Financial fees like those involved in opening of an |
| customers. | | | | account are some of the other means of making |
| By making a pool of the large capital base made up of | | | | money for a bank. This is possible in a case where the |
| cash deposits, a bank can be able to invest the money | | | | commercial bank enjoys a large following which when |
| in the meantime in profitable schemes that have a | | | | other long term security measures are excluded has |
| financial implication in the bank and through advertising. | | | | little effect on the custodial expenses that come with |
| Another most common standard of doing business by | | | | the deposit. Other charges include those contained in |
| commercial banks is by charging interests on loans | | | | transfer fees and ATM fees for the city residents |
| that can bring a large amount of profit ranging from a | | | | who have no access to the physical bank or are |
| tenth of the amount lent to double the amount or more | | | | constrained by time to visit the real bank. Banks can |
| in certain long-term transactions. In special cases like | | | | also offer services of money transfer through cell |
| loans that have a high risk value, especially those | | | | phones by including service charges higher than normal |
| extended on an economically insecure basis, banks | | | | rates in the telecommunication industry. |