10 things you didn’t know about banks
1. Banks are some of the most heavily regulated institutions in the world.
2. Banks play a crucial role in the economy, providing essential services to businesses and individuals.
3. Banks are huge – the largest, JPMorgan Chase, has assets of over $2 trillion.
4. Despite their size and importance, banks are surprisingly fragile. They were at the center of the financial crisis of 2008 and have been bailed out by taxpayers several times.
5. Banks make most of their money from lending, but they also earn revenue from fees and investments.
6. The interest rates charged on loans and paid on deposits are set by the market, not by the banks.
7. Banks use complex financial instruments to minimize their risk, but these can backfire – as happened during the financial crisis.
8. Banks are facing new challenges from technology companies like Amazon and Facebook, which are encroaching on their turf with new payment systems and financial products.
9. Banks are under constant attack from cyber criminals, who are attracted by the large amounts of money they hold.
10. Despite all their problems, banks are still immensely powerful and influential institutions.