"Banks have a vested interest in the growth
of their customers."
This is very difficult for me.
"Banks are indispensable for the customers'
growth"?
Thank you.
a vested interest in
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- Posts: 37
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- Location: Taiwan
Banks make more money of richer clients.
It differs from bank to bank but about 80% of there income is generated through "structured lending" which is Tax or Derivative Based Finance. So the more a client is worth the more they can invest through the bank or borrow from it. Richer people hedge their risk and leverage their returns meaning they will invest in a 5 million dollar property with 1 million cash and 4 million borrowed. The client earns money on 5 million and the bank interest on four million.
Therefore banks have a vested interest in how well their clients do.
It differs from bank to bank but about 80% of there income is generated through "structured lending" which is Tax or Derivative Based Finance. So the more a client is worth the more they can invest through the bank or borrow from it. Richer people hedge their risk and leverage their returns meaning they will invest in a 5 million dollar property with 1 million cash and 4 million borrowed. The client earns money on 5 million and the bank interest on four million.
Therefore banks have a vested interest in how well their clients do.
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- Posts: 37
- Joined: Mon Feb 18, 2008 4:37 am
- Location: Taiwan