What is the bank's turnover?
Bank turnover indicates the amount of income that the bank generates in a given period of time. The financial period may include weeks and months, but income reports usually apply every three months, known as quarterly or at the end of the financial year. While the turnover usually applies to the amount of money brought to the bank, it may also apply to the turnover of employees, customers and assets. These bank turnover methods are interest, fees, investments and sales. Interest increases from loans and mortgages. Theoretically bank loans a specific amount for a person or business with an agreed rate of return or interest. The person pays back more than he borrowed, and the bank receives profit. Fees
may represent a small number of income for the bank. This means that there are often a lot of small fees paid by customers and sometimes non-doers. When customers with certain accounts get to a negative amount of money the bank charges fees and interest. Such interest is often reduced if the customer has an overdraft arrangementhere.
Banks also increase fees from those who collect credit cards and especially those who do not pay the balance back in time. Banks in many countries charge users to use their money machines or automated Teller (ATMS) machines. They also charge larger fees to people who use competing banks and competing banking customers who use their ATMs.
Investment provides the largest amount for the bank. It is also the most complex and most difficult to regulate the area of banking activities. The investment, which is solved by the bank's investment arm, includes calculated risks on the world stock market. Banks take money that is commissioned by customers and holds them for several days- therefore inspections and deposits do not immediately clarify- investing money for a short or long-term profit.
sales money in terms of turnover of the bank comes from the sale of assets and real estate. If the bank excludes the home of a person in America,is able to regain some or all mortgage money by selling a house to someone else. Banks can sell their own properties, shares in other companies and assets such as gold to increase more income and increase the bank's turnover.
Bank turnover is balanced by losses. These losses come in the form of wages, taxes and general costs. It also comes from the payment of interest to investors and savings and losses from market investment. If bank loans too much money in the form of loans and mortgages, the bank's turnover may fall if the loan block is not sufficiently repaid.