How does a bank work?

How does a bank earn its money?

In essence, a bank accepts short-term deposits and uses them for long-term loans. Whether the profit and loss account shows profit or loss in the end is determined by the difference between the interest that a bank charges to borrowers and the interest it pays to savers.

The bank balance sheet

Assessing the social role and responsibility of a bank is not an easy task. A financial institution is by definition a complex organisation and for those who do not know its operation it is not...
What is the role of the financial sector in the economy?

The banks’ core business consists in intermediating between those who have financial means at their disposal, and those who are in need of funds.
The first category of people lends money to...
What do we mean by corporate social responsibility and socially responsible banking?

The European Commission defines corporate social responsibility (CSR) as “the responsibility of enterprises for their impacts on society”.
“Respect for applicable legislation, and for...
What do banks do to fight fraud?

The financial institutions have an important signal function in the fight against suspicious transactions, tax evasion and money-laundering practices. The institutions in bordering countries do...
Survey of the banks about the sustainability themes

For the collection of the qualitative and quantitative data we used public and independent sources.as much as possible. For a large number of themes that are very relevant for the sector, public...
How do the banks identify and communicate their risks?

Each financial institution is individually responsible for the suitable manner in which it identifies its risks and communicates about them.
All institutions have an open structure and clear...
Are financial institutions good companies to work for?

The financial sector is an interesting and informative sector that offers opportunities to ambitious people. Opportunities for further growth, training and coaching are available for the employees...
How does the financial sector contribute to social projects?

The financial sector supports many social projects at various levels: sports, culture, education, support of underprivileged groups, etc. Because the involvement of their employees is important,...
Sustainable financial products recommendation

Recommendation for Febelfin members about the minimum criteria for products labelled as ‘sustainable’ or ‘socially responsible’
How is good governance translated with regard to the financial sector?

Good governance is also called corporate governance. The concept covers all processes and regulations that relate to the manner in which a company is managed and monitored internally.
Whoever...

How does a bank work?

How does a bank earn its money?

Most read

The bank balance sheet

What is the role of the financial sector in the economy?

What do we mean by corporate social responsibility and socially responsible banking?

What do banks do to fight fraud?

Survey of the banks about the sustainability themes

How do the banks identify and communicate their risks?

Are financial institutions good companies to work for?

How does the financial sector contribute to social projects?

Sustainable financial products recommendation

How is good governance translated with regard to the financial sector?