Re:Ask HN: How do companies actually make money with fractio...
by cimmanom on Monday October 15, 2018 @05:12PM
(#18223804)
Arbitrage and short term bets such as high frequency trading and day trading.
The most old fashioned ways for banks to make money on reserves, though, is to lend it - especially moderate-interest loans such as business loans and mortgages. These days, they also can use the funds to back credit card payments, for instance.
The most old fashioned ways for banks to make money on reserves, though, is to lend it - especially moderate-interest loans such as business loans and mortgages. These days, they also can use the funds to back credit card payments, for instance.