Monday, June 11, 2007

The Sources of Income To Commercial Banks

Commercial Banks generate money in the following ways:1. Commercial banks realise money from interest they charge in loans they give to their customers.2.They derive money from the commission owners of current accounts pay them.3.Commercial banks charge some amount for the agency services they render to their customers.4. Some amount accrue to commercial banks from discounting of bills of exchange.5. Commercial banks realise some amount from their capital investments which yield profits for them.6. They also realise some amount of money through the sale of government's treasury bills and shares for companies.

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