A weird story in today's paper. Banks are saying they have too much cash and it cost them more to handle said funds than the deposits can earn for them. Now they will start charging you to hold your money.
read
Banks used to have a simple, conservative formula. Pay depositors x, make prudent loans, charge debtors y and pocket the difference. Over the last decade they through prudence out the window, now they are reluctant to lend and the only way left to profit is by charging fees. The banking business model is badly broken.
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Sounds like banks are continuously trying to find creative ways to turn a profit from deposits, investments and loans. Interesting read.
What? Why they don't lend it?
Banks used to have a simple, conservative formula. Pay depositors x, make prudent loans, charge debtors y and pocket the difference. Over the last decade they through prudence out the window, now they are reluctant to lend and the only way left to profit is by charging fees. The banking business model is badly broken.