should the profits from banks be returned to the community? should any profits the banks make be going ....?

Question

into individuals pockets?
we all have to use banks these days so shouldnt the pofits return to the users?

Answer 1

Technically speaking, some of the profits are returned to the community. American banks are required by the FDIC to follow the Community Reinvestment Act, which basically means that individual banks, or branches, are required to meet the needs of the local consumers and businesses, so that the whole community flourishes. It also requires that banks do their share to help local non-profit organizations.

Answer 2

Without the potential promise of profits, bankers wouldn't feel any need to open banks.

Without banks, people wouldn't be able to borrow money to buy cars and houses and other things. Everyone would be force to pay cash for everything.

How many people do you suppose would be able to save up what it costs to buy a house? In my area, the median price is over seven hundred thousand dollars!

I think, perhaps you don't quite know who these "people" are, who run banks. They are no different than those people who run any corporations. They are in it for the money. Just the same an anyone else.

Lets say you wanted to open up your own business, say, mowing lawns, or repairing computers. What would you think of the idea that all of your profits should go back to the community? Would you still bother staying in business?

Answer 3

No, they should go to the bank's stockholders. Banking is a business and the investors are entitled to a return on their investment.

Banks DO invest in the community by making loans to residents and businesses. This fosters home ownership and business growth which creates jobs and other investments.

If you want the profits to go back to the users, open a credit union account where you will be one of the owners. I've been a credit union member for decades and rarely do business with banks.

Answer 4

Banks are owned by shareholders, who are paid dividends when the banks make a profit. You can be a shareholder and get your cut.
It would be wonderful if banks gave money to the community but in a capitalistic system, the people who invest in the banks make the profits.

Answer 5

Banks are businesses just like grocery stores or rtail shopping centers. Many banks are publicly traded, so the profits go to those who are shareholders. If you want any profits going into your pockets, open an interest bearing account or buy some stock.

Answer 6

The Banks are paying to the customers interests. They come from the result of their investments.
Their profit should not go to the comunity because the banks are profit organizations.

Answer 7

No we don't have to use banks .If you was a director of a bank I don't think you would do what your question ask,s

Answer 8

a bank is a business too they have to make money

after all if you worked all week you would want to get paid too right?