How do banks make money?

This question is of interest to many. People make bank deposits, and after a while get together with a profit. Where did it come from? Under Russian law, banks are credit institutions. Here lies the answer to the perennial question. Let's start with the fact that for the opening of the bank will need to have at least 180 million rubles, which should form the basis of the statutory fund. To carry out banking activities must be obtained from the Central Bank license. If the bank plans to work with contributions from the public, it must become a party to a compulsory system of insurance that guarantees the return of bank customers to 700 thousand rubles. These mechanisms are the guarantee of a sound financial structure. Main source of the Bank's resources are own funds, deposits from the public, corporate accounts and loans from the Central Bank issued at the refinancing rate at 7.75% per annum. As noted above, the main function of the bank - to issue loans. You probably know the interest rates of the various agencies. All of them ranged from 10 to 70% per annum. Now guess where the money from the bank? Consider an example. A bank attracted 1 million rubles. with contributions from the population at 8% per annum and picked up 1 million rubles. the Central Bank by 7.75%. Thus, it after 1 year to return 1.08 million rubles. population and 1,077,500 rubles. Central Bank. Then the agency gives the 2 million rubles. on various loans at 25% per annum. A year later, gets 2.5 million USD. Subtract from this amount, the average proportion (10%) of bad loans that borrowers did not return. We get 2.25 million rubles. From which pay 1.08 to the population, and 1,077,500 rubles. in the CBA. Total bank has a net income equal to 92,500 rubles. Now this sum is multiplied by hundreds or thousands of times - here and get the average income of the bank. Meanwhile, banks earn not only to issue loans, but receive a percentage of service charge accounts and cards, currency exchange, remittances, collection (transportation money), etc. All of this brings a lot of money to bankers. That is why the banking system in Russia is developing by leaps and bounds and today in our country there are about thousands of banks. However, to call the work of the bankers just too easy, too, no: they are immersed in a strict paperwork, they have to work under the gaze of cameras with a variety of fastidious and non-executive clients, they are often prone to stress and health problems because of their sedentary lifestyles.