what are your opinions on banks and do you think they forget that it is OUR money that they are banking?
2007-02-19 02:11:49 · 11 answers · asked by wave 5 in Business & Finance ➔ Personal Finance
I find the way banks work weird.
Using myself as an example ... I earn an above average wage, my girlfriend is a mid-range nurse, so a fair amount is put in every month. We have no debt, we do not use credit cards and do not use an overdraft. We always keep a minimum of £800 in the Bank at any one time.
Now .... Common sense says that financially we are very low risk and therefore should be given all the bells and whistles.
However .... Because we have no debt, we have no credit rating, couldnt get a loan if we wanted one and as for mortage, no chance ... why the hell is that ?
I think (personal opinion) it is because the bank knows it wont make any money out of us as we are capable of living our life without incurring charges. Typical of the countries greed, but ultimately blatant ... it seems banks care not how bad their reputation is.
2007-02-19 02:23:16 · answer #1 · answered by brianthesnailuk2002 6 · 2⤊ 0⤋
Most of the money in banks does not exist either yours or theirs. In a simple example A bank makes a loan of £1000 but it has only £500 in its vaults it has created £500 who does that money (which doesn't exist) belong to? This happens daily all over the world. Fortunately in Britain there are rules which prevent banks from over extending their credit in this way. Certainly if you were to do, as a private individual, what these banks do you would be thrown in jail. What does exist is the confidence in a bank's ability to pay on demand and also the licence they give to you with a credit card to create more non-existent money.
Would you prefer a return to Ancient Sparta where banks where outlawed and each citizen had to carry his entire fortune around with him at all times and the currency was made of iron.
2007-02-19 02:22:32 · answer #2 · answered by BARROWMAN 6 · 0⤊ 0⤋
Banks mobilise funds from depositors and lend them to borrowers. Depositors are sources and borrowers are users of bank finance. Generally, they borrow at lower rates and lend at higher rates and the difference between the two rates is the bankers' spread. Their margins and profits depend on this spread. Most banks put low levels of capital but now they are required to have safe capital structures as per Basel requirements. The greater the speed of the cycle of movement of funds, the greater would be the net earnings of banks. They are regulated by the central banking authority of a country and hence provide a reasonable safety to depositors. However, smaller banks and banks in some sectors like the cooperative sector seem to be facing crises and one can find examples of low performance and even some failures.
2007-02-19 02:19:48 · answer #3 · answered by braj k 3 · 0⤊ 1⤋
yes i think banks do forget it is OUR money and i think bank charges are disgusting. twice recently i'vre been charged £38 for the sake of being £2 short of a payment
2007-02-19 02:20:16 · answer #4 · answered by shasbod@btinternet.com 1 · 0⤊ 1⤋
If you think banks are unreasonably profitable buy shares in them, its an open market so why complain when you see an oppotunity?
2007-02-23 00:18:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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2016-09-29 07:59:04 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Yes, they seem to forget who's money it is, they rip us off and charge us a fortune for borrowing it. If only we could find another method and all of us withdraw our savings.
2007-02-19 02:19:10 · answer #7 · answered by Anonymous · 0⤊ 1⤋
What do money market accounts pay today?
2007-02-19 03:07:48 · answer #8 · answered by Damaris M 1 · 0⤊ 1⤋
They usually take what I have left at the end of the month in charges, then charge me again next month for going overdrawn cos of their charges this month!!!!!!
GGRRRRRRR!!!!!!!!!!!!
2007-02-19 02:16:01 · answer #9 · answered by xxfliteratixx 2 · 1⤊ 1⤋
they do make money on our money they invest it make money on it and then we are allowed it
2007-02-19 02:15:40 · answer #10 · answered by friendofb 5 · 0⤊ 1⤋