Re:The branch banking model
by 55555 on Saturday September 03, 2022 @12:08AM
(#32698609)
You’re claiming banks make 5k in profit for every 1k in deposits. Chase has 2.3 trillion in deposits. Why don’t they have 10+ trillion in annual profits?
[ Parent
| on HN ]
Chase is limited in that they can only lend to well-qualified borrowers who wish to borrow from Chase on terms Chase deems sufficiently profitable.
In other words they are limited by the demand for loans by well-qualified borrowers. Well qualified is defined as borrowers with sufficient collatoral, income/debt, and credit history.