damn, they get you coming and going. cant even deposit your own money in your own account without paying something
Don't you think it's fair for the employee to get paid as well?
The fed, fdic and occ all maintain a variety of a&l rules that outline what categories of loans can be approved that range the gamut from in state/out state to subsidized loans/market rate loans. Thats before taking into account all the consumer protection frameworks.
All that is to say, if a bank gets to a loan/deposit ratio above .9 they are likely considered insolvent depending on the framework in question. The reserve requirement is no brake on their ability to loan out deposits, but there are lots of other ones that apply.
I think the thing that actually moved the fed to remove the reserve requirement was the big banks sitting in the 50-70 range (and of course the covid liquidity crunch). The monopoly we grant banks is in part so they will finance economic activity, if they aren’t doing that we’ve got a structural problem.
That doesn't mean the supermarket doesn't charge you for it. Supermarket too are massively profitable businesses.
Then, regarding supermarkets you'd be surprised as their business model isn't what you think it is. Since they pay their suppliers quite some time after being shipped (60 days in my country, it varies with the country but AFAIK there's always a delay) while they sell their stock much more quickly, which means the majority of what you buy from them, they haven't actually paid it, but borrowed with an interest rate of zero. When interest rates are high, they can make significant revenues from managing this cash flow alone.
[1]: https://www.bankofengland.co.uk/knowledgebank/how-is-money-c...
Why do you think savings accounts have limits on it but you get interest on it? Because it's more stable and more reliable for them.
By "massively" do you mean margins of 2-4%?
In a fractional reserve system where by the Fed allows them to "create" money from thin air that is not needed so they charge to take the deposits
I understand these words but not how you’re putting them together. If banks are lending deposits, then definitionally, they only have a fraction of those deposits left as reserves.
What am I missing about your hypothetical? What does this non-fractional reserve system look like if lending still exists?
They are making billions where I live and they are setting profit records on a regular basis. They make about $1200 per head of population. I’m in New Zealand.
https://www.newsroom.co.nz/taxing-banks-excessive-profits-be...
Depending on the type of business, cash drops are handled directly by employees on company time, or else handled by a cash transport service such as Brinks.
As a regular consumer you can deposit cash without additional fees.
If you're running even a modest business, keeping large amounts of cash on-hand for any length of time is a business risk. Some vendors may not want to be paid in cash, particularly for larger payments.
Depositing it is the only way to deal with a lot of things.
- bank account fee - online and mobile banking fees - card "membership" fee - individual payment fees - ATM fees - incoming card payment fees - [probably more]
And the bank is already making money by lending out my money to others and charging interest. I'm not saying none of those fees are justified, but at some point you have to ask: have they not taken enough??
Why not itemize?
besides, you just wouldn't respect them in the morning if they did NOT take some money from you, would you?
Is OCR really that bad?
Still not 100% automatic. (There is also the anti-counterfeit component.)
> $3 per $10,000 transacted.
That doesn't sounds that bad. It's just not free.
If there’s a damaged or counterfeit note it spits it back out. This is certainly 100% automated and it tells you exactly how much you deposited afterwards.