How Do Banks Make Money?
The interest gap is the biggest gate: about two thirds of US banks' revenue in one quarter of 2026; fees and trading are about a third.
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1.What are the three ways banks make money in the video?
The interest gap is the biggest gate: about two thirds of US banks' revenue in one quarter of 2026; fees and trading are about a third.
2.What is the net interest margin?
For US banks 5.35 percent yield minus 2.03 percent funding cost is a gap of 3.32 percent, the net interest margin.
3.A bank pays 2 percent on 1,000 and lends 1,000 at 6 percent. What is the gap in money?
Sixty minus twenty is 40: the bank pays interest and still earns from the gap.
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Sources (2)
- FDIC, Quarterly Banking Profile, Second Quarter 2026
- Eigene Berechnung (Modellbank
Education only. Not financial advice.