HOW BANKS MAKE PROFITS
金融report报告代写 The banking sector plays a critical role in the economy of any country. Countries with a strong banking sector can manage..
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Introduction
The banking sector plays a critical role in the economy of any country. Countries with a strong banking sector can manage their finances and funds more efficiently and, therefore, enjoy a stable economy and strengthened financial sectors (Ahmad et al., 2020). Where there are issues in the banking sector, the economy is impacted negatively.
Today, the banking sector has become more competitive because of the emergence of new technologies. The banks can exert considerable efforts in improving performance and remain competitive. While the banking sector has always been considered essential for the economy, it has now received attention from the policymakers and researchers (Bresser-Pereira, 2010, p.5).金融report报告代写
The use of technologies in the banking sector has improved economies in bank-oriented countries like central and Eastern Europe and market-oriented countries like the US. To truly understand how the bank makes its profits, it is essential to understand the word profit and learn how banks can profit while analyzing neoclassical economics and Marxian economics.
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银行业在任何国家的经济中都起着至关重要的作用。拥有强大银行业的国家可以更有效地管理其金融和资金，因此，经济稳定，金融业得到加强（Ahmad等，2020）。在银行部门存在问题的地方，经济受到负面影响。
如今，由于新技术的出现，银行业已变得更具竞争力。银行可以做出很大的努力来提高绩效并保持竞争力。尽管一直认为银行业对经济至关重要，但如今它已受到政策制定者和研究人员的关注（Bresser-Pereira，2010年，第5页）。
银行业中技术的使用改善了以银行为导向的国家（如中欧和东欧）和以市场为导向的国家（如美国）的经济。要真正理解银行如何盈利，在分析新古典经济学和马克思主义经济学的同时，了解“赢利”一词并学习银行如何获利至关重要。
What Is Profits?金融report报告代写
Profit is defined as the financial benefits earned by an organization when revenue is generated from business activities exceed the taxes, expenses, and costs for sustaining the activity in question (Philip, 2019). The business owners have the freedom to choose whether to reinvest the profits into the company of pocket the cash. Profits are calculated as total revenue,
less total expenses. The primary goal for any business is to ensure that it is making sufficient money, and the performance of a company is determined based on its profitability (Ahmad et al., 2020). Some analysts look at top-line profitability, while others consider profitability before other expenses and taxes.金融report报告代写
However, some only think a business is profitable if there is money left after all the expenses have been paid. There are three types of profits, operating profit, gross profit, and net profit. Each type provides observers with more information on how the business is fairing compared to its competitors.
Banks make money in a variety of ways.金融report报告代写
Most banks will employ the traditional banking strategies to attract mortgages in exchange for interest payments and transaction services and make more profits by lending them money to business customers at a higher interest rate (Bresser-Pereira, 2010, p.10). The non-traditional banking strategies used today by banks to earn profits include the use of mortgages and credit cards,
which allow for a few depositor services. They also sell off their loans soon after making them and earn profits from the fees generated for securitizing, originating, and servicing the loans. There is also the option of serving local markets throughout the country (Fungáčová et al., 2017), catering for both households and businesses and using the brick and mortar delivery systems and the internet to serve customers.
The issue of how banks make profits has been consistent in most economic perspectives.金融report报告代写
For most countries before the 1990s, the banks were homogenous. Today, however, commercial banking organizations are significantly different from each other in geographical scope, target markets, size, and quality of services offered (Fungáčová et al., 2017). These are the products of technological changes and deregulation that has occurred in the past two decades.金融report报告代写
Additionally, there have been dramatic changes in the structure of countries' financial systems (Ahmad et al., 2020). There are two generic strategies used by banks. Following studies by (Ahmad et al., 2020) and by (Klein and Weill, 2018), it is clear that efficiency impacts banks' performance. However, there is no clear expectation of the shareholder and bank relationship at any time.
It is expected that the efficiency of profits and costs will positively impact the cash flows, both present and future. Some studies (Fungáčová et al., 2017) have also found a positive relationship between stock returns and bank efficiencies. These studies suggest that the positive relationship between shareholder value creation and efficiency leads to higher performance.
在大多数经济学观点中，银行如何盈利的问题一直存在。
对于1990年代之前的大多数国家，银行是同质的。然而，如今，商业银行组织在地理范围，目标市场，规模和提供的服务质量方面已大不相同（Fungáčová等，2017）。这些是过去二十年来发生的技术变革和管制放松的产物
此外，国家金融体系的结构发生了巨大变化（Ahmad等，2020）。银行使用两种通用策略。根据（Ahmad et al。，2020）和（Klein and Weill，2018）的研究，很明显，效率会影响银行的绩效。但是，在任何时候都没有明确的股东与银行关系的期望。
预期利润和成本的效率将对当前和未来的现金流量产生积极影响。一些研究（Fungáčová等人，2017）也发现了股票收益率与银行效率之间的正相关关系。这些研究表明，股东价值创造与效率之间的正相关关系会导致更高的绩效。
Consequently, there are various extremities where there are higher levels of efficiency.金融report报告代写
For instance, there may be a free cash flow on the bank returns (Bresser-Pereira, 2010, p.20). Aggressive efficiency strategies will reduce customer satisfaction, which may adversely affect workforce motivation and productivity. The bank's effectiveness enhancements may impact the bank's benefits and investor esteem: for instance, '
forceful' productivity projects may likewise expand the corporate danger with a negative impact on the investor esteem made in a given time-frame by raising the cost chance of the capital contributed, while this would not be influenced by the benefit made in a similar period (Philip, 2019). The danger taking affinity of banks is another factor expected to impact the capacity to create returns.
There are many types of banks' risks, including market risks, liquidity risk, credit risk, and operational risks (Ticktin, 2013). Banks that engage in deposit-taking and loans face credit risks. Credit risks are significant and heavily influence banks' profitability (Fungáčová et al., 2017). Operational risk is also significant since it deals with failed internal processes,
systems, and processes from external events.金融report报告代写
Liquidity risks deal with the banks holding insufficient liquid assets and unable to meet the requirements without impairing the reputation or financial capital. Higher bank profits are directly proportional to the ability of the banks to deal with these risks.Its financial structure also determines the profitability of a bank.
It might be a significant determinant of benefit and\or investor esteem creation. Bresser-Pereira (2010, p.13) proves that organizations with a larger capacity of lending make more profits than firms with a lower capacity and fewer employees. Focusing on the US banking framework (Ahmad et al., 2020),
specialists have recently researched the speculation under which high influence lessens the organization's expenses of outside value and expands firm worth (since administrators will act more in general light of a legitimate concern for investors). The creators find concrete proof that stronger influence (or a lower value capital proportion) is related to higher benefit proficiency (Philip, 2019),金融report报告代写
all else equivalent. Accordingly, we utilize a bank influence measure (as the proportion between the aggregate sum of liabilities and value funding) to represent money related structure (Gugler and Peev, 2018). Market structure highlights can affect firm execution. Regularly, the literature tries to examine whether factors, for example,
industry focus or a trial of relative market power theory, can sway on bank profitability. A portion of the ongoing research (Ticktin, 2013) considers the likelihood that banks' various sizes may influence serious conditions.
Marxism Economy and Banking Sectors金融report报告代写
The Marxism economic school focuses on the role of labor in the creation of a healthy economy. It follows the classical approaches to wages and productivity. According to Marx, labor force specializations and population growth push wages down. In such a case, labor's real cost is not mirrored by the prices of services and goods (Bresser-Pereira, 2010, p.11).
According to this theory, it is not the labor pressure that drives the wages to substance levels. It is the existence of a large unemployed population. In this theory, labor is a commodity that gains through wages paid. When relating this theory to the banking sector, it demonstrates more profit when more labor is used since there is more productivity within the labor force (Gugler and Peev, 2018).金融report报告代写
Therefore, larger banks earn more profits since they can employ a larger labor force for marketing and follow up with customers.
Theoretically, it is expected that the capital flows will be towards the economies that demonstrate higher profits. Gugler and Peev (2018) have shown that emerging economies' capital flows rose faster,
马克思主义经济与银行业
马克思主义经济流派注重劳动在创建健康经济中的作用。它遵循有关工资和生产率的经典方法。根据马克思的说法，劳动力专业化和人口增长使工资下降。在这种情况下，劳动力的实际成本无法反映在服务和商品的价格上（Bresser-Pereira，2010年，第11页）。 根据这一理论，不是劳动压力将工资推高到实质水平。这是大量失业人口的存在。按照这种理论，劳动是一种通过支付工资获得的商品。当将此理论与银行业联系起来时，由于劳动力内部生产率更高，因此在使用更多劳动力时就显示出更多的利润（Gugler and Peev，2018）。 因此，大型银行可以获得更多的利润，因为它们可以雇用更大的劳动力进行营销并跟进客户。 从理论上讲，预计资本将流向利润较高的经济体。 Gugler and Peev（2018）表明，新兴经济体的资本流动增长更快，
These are the effects of higher investments such as depositing with banks, taking more loans for real estate and other fast-growing industries, and huge capital stock in the financial sector (Bresser-Pereira, 2010, p.5). According to his theory, Marx believed that the working class would overthrow capitalism and seize the economy.
The working class represents the majority of the population who do not have access or a means of production and therefore have to sell labor for salaries and access to goods, necessities, and services. The wealthier classes get richer by exploiting the working class for cheap labor and bad working conditions.金融report报告代写
Most banks offer customers similar packages. For instance, there is often little or no difference between the loan interest rates and terms between different banks (Gugler and Peev, 2018). These financial institutions profit from low competition and earn more profits because low competition increases companies' financial obstacles.
there are fewer credit constraints and, therefore, fewer profits. Therefore low competition fosters credit access for customers (Klein and Weill, 2018). Banks are bound to broaden credits when they can assemble data on borrowers. In a concentrated credit market, Ticktin (2013) further shows that loan businesses are bound to acknowledge compelled firms as they can disguise the advantages of loaning to firms.
Ticktin (2013) affirms that an expansion in rivalry expands independent company loaning. Following this view, Fungacova, Shamshur, and Weill (2017) give exact proof that lower bank rivalry lessens the expense of credit for getting firms,
Low-income nations are not the biggest recipients of more prominent bank benefits for their development. The winners are developed economies climbing the ladder, although they may not be close to the top yet. At long last, we think about the effect of institutional quality. Establishments can impact the connection between bank profits and economic development in various manners.金融report报告代写
As noted, bank profitability affects economic growth by encouraging money related strength (Ahmad et al., 2020). In any case, financial stability might be advantageous or hindering economic development. The hindering effect of budgetary solidity results from how monetary progression related to monetary precariousness can be development improving (Liu, 2013).
The beneficial outcome of money-related crisis for growth might be molded on the high institutional quality that ensures helpless foundations do not relentlessly determine money related emergencies.
Neoclassical economics is a broad theory that deals with demand and supply as the driving force within the production, consumption, and pricing of services and goods. The theory emerged in 1900 and, as, with other classical theories (Gugler and Peev, 2018), it has several assumptions. The most popular assumption of the theory is that to consumers,
and not production costs are key factors for determining services' value. These theorists believe that consumers are cornered about their personal satisfaction above everything else (Liu, 2013). As a result, their purchasing decisions are often based on their evaluations of the utility of services. According to this theory,
there is no limit to the amount of profits a smart capitalist can make since products' value is driven by customers' perception (Gugler and Peev, 2018). In the banking environment, this is always the case. By maximizing customer satisfaction, banks can retain their customers for a more extended period and therefore continue to make profits, especially if their customers are making profits in their businesses.
The costs of finding new customers are often high. Thus by maintaining the old ones, a bank can avoid the costs associated with looking for and signing new customers (Klein and Weill, 2018). Customer satisfaction increases customer loyalty and reduces the need to allocate marketing budgets to finding new customers. Additionally,金融report报告代写
satisfied customers are likely to recommend the products and services to their friends, increasing the opportunity to make potential profits. The theory blends well with Marxism, which suggests that the workforce is the economic driver in most countries. The work done by these employees significantly impacts all other aspects of a business regardless of the industry.
新古典经济学
新古典经济学是一个广泛的理论，将需求和供给作为服务和商品的生产，消费和定价中的驱动力。该理论于1900年出现，与其他经典理论（Gugler和Peev，2018）一样，它有几个假设。该理论最普遍的假设是，对于消费者而言，
而生产成本不是决定服务价值的关键因素。这些理论家认为，消费者对自己的个人满意度至高无上（Liu，2013）。结果，他们的购买决策通常基于他们对服务效用的评估。根据这个理论，
聪明的资本家可以赚取的利润数量没有限制，因为产品的价值是由客户的感知决定的（Gugler and Peev，2018）。在银行环境中，情况总是如此。通过最大程度地提高客户满意度，银行可以保留其客户更长的时间，因此可以继续获利，尤其是当客户在其业务中获利时。
寻找新客户的成本通常很高。因此，通过维护旧客户，银行可以避免与寻找和签署新客户相关的成本（Klein and Weill，2018）。客户满意度提高了客户忠诚度，并减少了分配营销预算来寻找新客户的需求。此外，
满意的客户可能会向其朋友推荐产品和服务，从而增加了赚取潜在利润的机会。该理论与马克思主义很好地融合在一起，这表明劳动力是大多数国家的经济驱动力。这些员工所做的工作会极大地影响企业的所有其他方面，而与行业无关。
There are many avenues that banks use to make money. Apart from offering loans, banks also make a significant percentage of their money from fees (account fees, ATM fees, penalty charges, and more). Additionally, a penny saved is a penny lent. Customers who save money in the bank allow banks to have enough money to lend to others and earn a higher percentage.
The two schools of economics used in this paper suggest that banks need to focus much more on their employees' productivity and customer satisfaction to continue making profits. Satisfied customers will always recommend the bank to others. They are like an army of trusted marketers for the banks. Empirically,
happy employees will show enthusiasm when working with customers and therefore improve customer satisfaction. The use of technology is one of the best ways for banks to enjoy higher productivity levels and improved customer satisfaction.
金融学代写
and advanced economies remain larger during globalization.金融report报告代写
These are the effects of higher investments such as depositing with banks, taking more loans for real estate and other fast-growing industries, and huge capital stock in the financial sector (Bresser-Pereira, 2010, p.5). According to his theory, Marx believed that the working class would overthrow capitalism and seize the economy.
The working class represents the majority of the population who do not have access or a means of production and therefore have to sell labor for salaries and access to goods, necessities, and services. The wealthier classes get richer by exploiting the working class for cheap labor and bad working conditions.金融report报告代写
Most banks offer customers similar packages. For instance, there is often little or no difference between the loan interest rates and terms between different banks (Gugler and Peev, 2018). These financial institutions profit from low competition and earn more profits because low competition increases companies' financial obstacles.
When there is high competition between different banks,金融report报告代写
there are fewer credit constraints and, therefore, fewer profits. Therefore low competition fosters credit access for customers (Klein and Weill, 2018). Banks are bound to broaden credits when they can assemble data on borrowers. In a concentrated credit market, Ticktin (2013) further shows that loan businesses are bound to acknowledge compelled firms as they can disguise the advantages of loaning to firms.
Ticktin (2013) affirms that an expansion in rivalry expands independent company loaning. Following this view, Fungacova, Shamshur, and Weill (2017) give exact proof that lower bank rivalry lessens the expense of credit for getting firms,
subsequently preferring admittance to credit.金融report报告代写
Low-income nations are not the biggest recipients of more prominent bank benefits for their development. The winners are developed economies climbing the ladder, although they may not be close to the top yet. At long last, we think about the effect of institutional quality. Establishments can impact the connection between bank profits and economic development in various manners.金融report报告代写
As noted, bank profitability affects economic growth by encouraging money related strength (Ahmad et al., 2020). In any case, financial stability might be advantageous or hindering economic development. The hindering effect of budgetary solidity results from how monetary progression related to monetary precariousness can be development improving (Liu, 2013).
The beneficial outcome of money-related crisis for growth might be molded on the high institutional quality that ensures helpless foundations do not relentlessly determine money related emergencies.
Neoclassical Economics金融report报告代写
Neoclassical economics is a broad theory that deals with demand and supply as the driving force within the production, consumption, and pricing of services and goods. The theory emerged in 1900 and, as, with other classical theories (Gugler and Peev, 2018), it has several assumptions. The most popular assumption of the theory is that to consumers,
and not production costs are key factors for determining services' value. These theorists believe that consumers are cornered about their personal satisfaction above everything else (Liu, 2013). As a result, their purchasing decisions are often based on their evaluations of the utility of services. According to this theory,
there is no limit to the amount of profits a smart capitalist can make since products' value is driven by customers' perception (Gugler and Peev, 2018). In the banking environment, this is always the case. By maximizing customer satisfaction, banks can retain their customers for a more extended period and therefore continue to make profits, especially if their customers are making profits in their businesses.
The costs of finding new customers are often high. Thus by maintaining the old ones, a bank can avoid the costs associated with looking for and signing new customers (Klein and Weill, 2018). Customer satisfaction increases customer loyalty and reduces the need to allocate marketing budgets to finding new customers. Additionally,金融report报告代写
satisfied customers are likely to recommend the products and services to their friends, increasing the opportunity to make potential profits. The theory blends well with Marxism, which suggests that the workforce is the economic driver in most countries. The work done by these employees significantly impacts all other aspects of a business regardless of the industry.
新古典经济学
新古典经济学是一个广泛的理论，将需求和供给作为服务和商品的生产，消费和定价中的驱动力。该理论于1900年出现，与其他经典理论（Gugler和Peev，2018）一样，它有几个假设。该理论最普遍的假设是，对于消费者而言，
而生产成本不是决定服务价值的关键因素。这些理论家认为，消费者对自己的个人满意度至高无上（Liu，2013）。结果，他们的购买决策通常基于他们对服务效用的评估。根据这个理论，
聪明的资本家可以赚取的利润数量没有限制，因为产品的价值是由客户的感知决定的（Gugler and Peev，2018）。在银行环境中，情况总是如此。通过最大程度地提高客户满意度，银行可以保留其客户更长的时间，因此可以继续获利，尤其是当客户在其业务中获利时。
寻找新客户的成本通常很高。因此，通过维护旧客户，银行可以避免与寻找和签署新客户相关的成本（Klein and Weill，2018）。客户满意度提高了客户忠诚度，并减少了分配营销预算来寻找新客户的需求。此外，
满意的客户可能会向其朋友推荐产品和服务，从而增加了赚取潜在利润的机会。该理论与马克思主义很好地融合在一起，这表明劳动力是大多数国家的经济驱动力。这些员工所做的工作会极大地影响企业的所有其他方面，而与行业无关。
Conclusion金融report报告代写
There are many avenues that banks use to make money. Apart from offering loans, banks also make a significant percentage of their money from fees (account fees, ATM fees, penalty charges, and more). Additionally, a penny saved is a penny lent. Customers who save money in the bank allow banks to have enough money to lend to others and earn a higher percentage.
The two schools of economics used in this paper suggest that banks need to focus much more on their employees' productivity and customer satisfaction to continue making profits. Satisfied customers will always recommend the bank to others. They are like an army of trusted marketers for the banks. Empirically,
happy employees will show enthusiasm when working with customers and therefore improve customer satisfaction. The use of technology is one of the best ways for banks to enjoy higher productivity levels and improved customer satisfaction.
金融学代写
经济学代写
Ahmad, N., Naveed, A., Ahmad, S., and Butt, I., 2020. Banking Sector Performance, Profitability, and Efficiency: A Citation‐Based Systematic Literature Review. Journal of Economic Surveys, 34(1), pp.185-218.
Bresser-Pereira, L.C., 2010. The 2008 financial crisis and neoclassical economics. Brazilian Journal of Political Economy, 30(1), pp.03-26.
Fungáčová, Z., Shamshur, A., and Weill, L., 2017. Does bank competition reduce the cost of credit? Cross-country evidence from Europe. Journal of Banking & Finance, 83, pp.104-120.
Gugler, K., and Peev, E., 2018. The persistence of profits in banking: an international comparison. Applied Economics, 50(55), pp.5996-6009.
Klein, P.O., and Weill, L., 2018. Bank profitability and economic growth.
Liu, S., 2013. Determinants of the profitability of the US banking industry during the financial crisis.
Philip, B., 2019. Marxism, neoclassical economics, and the length of the working day. Review of Political Economy, 13(1), pp.27-39.
Ticktin, H. ed., 2013. Marxism and the global financial crisis. Routledge.
References
Ahmad, N., Naveed, A., Ahmad, S., and Butt, I., 2020. Banking Sector Performance, Profitability, and Efficiency: A Citation‐Based Systematic Literature Review. Journal of Economic Surveys, 34(1), pp.185-218.
Bresser-Pereira, L.C., 2010. The 2008 financial crisis and neoclassical economics. Brazilian Journal of Political Economy, 30(1), pp.03-26.
Fungáčová, Z., Shamshur, A., and Weill, L., 2017. Does bank competition reduce the cost of credit? Cross-country evidence from Europe. Journal of Banking & Finance, 83, pp.104-120.
Gugler, K., and Peev, E., 2018. The persistence of profits in banking: an international comparison. Applied Economics, 50(55), pp.5996-6009.
Klein, P.O., and Weill, L., 2018. Bank profitability and economic growth.
Liu, S., 2013. Determinants of the profitability of the US banking industry during the financial crisis.
Philip, B., 2019. Marxism, neoclassical economics, and the length of the working day. Review of Political Economy, 13(1), pp.27-39.
Ticktin, H. ed., 2013. Marxism and the global financial crisis. Routledge.
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