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>"Banks do not produce, they have no income from dividends, so how they earn?" They provide a service. Just because they don't "produce" something by processin
by zo1 12y ago
>"Banks do not produce, they have no income from dividends, so how they earn?"
They provide a service. Just because they don't "produce" something by processing raw materials, or less-processed goods, doesn't meant they're not providing something of value to someone.
But, additionally and simplistically, they make money from giving out loans at higher interest rates than what they give out at in deposits.
- jsprogrammer 12y agoThey don't just give out loans, they create brand new money. They also have a state-enforced and -backed monopoly on this creation of new money. So they do "produce", it's just that what they produce is more or less "fictional" violence tokens.