Global  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

What Is a Bank's Spread?

Video Credit: The Street - Duration: 01:27s - Published < > Embed
What Is a Bank's Spread?

What Is a Bank's Spread?

What is a bank's spread?

It's the difference in the interest rate the bank earns on loans and the interest rate it pays to its lenders and depositors.

Sounds intimidating, right?.

Trust TheStreet.

It's fairly simple.

Even beyond its simplicity, we'll show you how this is useful to understand when your bank stocks report earnings.

Let's start here: A business needs to profit.

The name of the game?

Take in more money than it spends.

Generally, money in minus money out equals net money generated by the business.

Well banks operate in lending and borrowing markets, so let's just transfer business 101 over to a bank's model.

A bank lends to you the home buyer, you the car buyer, you the business owner, or with some of the banks, big corporations who need the financing for profit generating projects.

But it has to borrow money to lend money.

It can't just lend its own cash and only see the full amount come back in years.

Now, to see the rest of how this works, watch the quick video above.

Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud Catch Up: Today's Top News Videos Below

0
shares
ShareTweetSavePostSend
 

Recent related news from verified sources

Morgan Stanley Is Latest Bank to Offer $1 Trillion Aramco Spread

Morgan Stanley is one of the most bearish -- and bullish -- on Saudi Aramco's valuation.In a...
Newsmax - Published

Archer Materials continues to progress its quantum computing chip

Archer Materials Ltd (ASX:AXE) has progressed its pioneering quantum technology project called 12CQ,...
Proactive Investors - Published


You Might Like


Tweets about this

MichaelaWiegel

Michaela Wiegel @HrReisen @EmmanuelMacron Really? Did you think about what we know about credit for Le Pen‘s national rally by Krem… https://t.co/jhqwIo7vqi 4 hours ago

Gilby3108

Jill Jervis RT @Lance63: @sajidjavid What Lies! Last Labour Govt was less in debt than previous @Conservatives Govts until US sub-prime lending collap… 16 hours ago

swayrock

OC do not steal @kelliwardaz Hey uh the policies like what Warren is proposing are what accelerated the US out of the Great Depress… https://t.co/m6ns2QW9Ci 1 day ago

prettypadmaja

🇮🇳 Padmaja RT @ahhi_92: @rishikalapi @prettypadmaja @sumanthraman Ppl had to queue up because they were not encouraged to open bank accounts. Ppl queu… 1 day ago

ahhi_92

@₹(_)|\| @rishikalapi @prettypadmaja @sumanthraman Ppl had to queue up because they were not encouraged to open bank account… https://t.co/bqP4mmxFrz 1 day ago

Lance63

Lance Dyer @sajidjavid What Lies! Last Labour Govt was less in debt than previous @Conservatives Govts until US sub-prime len… https://t.co/dvgsEI5A3L 2 days ago

SunilMa41182029

Sunil Malhotra Message is getting spread out that to maintain your account with banks is unsafe due to case of P& M bank scam and… https://t.co/Ya59orRaOD 2 days ago

DisneyDragon

Dragon 🔜 NY Question from Bank of America: “Disneyland attendance decline seems weird and price increases have been high, wha… https://t.co/SS435O1F2b 2 days ago


Recent related videos from verified sources

Fed's Powell in No Rush to Cut Rates, But the Market Barely Flinched [Video]Fed's Powell in No Rush to Cut Rates, But the Market Barely Flinched

Federal Reserve Chairman Jerome Powell spoke in front of Congress Wednesday and while he didn't seem in a rush to cut interest rates further, investors don't seem very bothered. All three major U.S...

Credit: The Street     Duration: 01:20Published

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.