If I own a bank and borrow from the reserve at 3.5% then lend it out at 6.8% that nearly double.
3.3% margin as a percentage of 3.5% is 94% return on investment. That is insane considering most businesses rely on 20% return on investment. More money should be paid out to shareholders.
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- banks make 90% profit on lending per year.
banks make 90% profit on lending per year.
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