Whenever a bank reports a huge profit, I wonder where the profit comes from.
Is it due to the huge interest rate spread, i.e. the difference between the high interest rate charged to borrowers and the meagre interest rate paid to depositors? Should the government have created a better investing environment so that the consumers get a decent interest rate on their savings?
How much of the profit come from the sale of financial products, including the high risk currency-linked, credit-linked and equity-linked products that have devastated the savings of the unwary investors?
Singapore has been an excellent place for the local and international banks to make huge profits. Does this suggest that the consumers in Singapore are contributing to these huge profits?
http://www.todayonline.com/Business/EDC120301-0000081/Singapore-helps-StanChart-hit-record-profit
Is it due to the huge interest rate spread, i.e. the difference between the high interest rate charged to borrowers and the meagre interest rate paid to depositors? Should the government have created a better investing environment so that the consumers get a decent interest rate on their savings?
How much of the profit come from the sale of financial products, including the high risk currency-linked, credit-linked and equity-linked products that have devastated the savings of the unwary investors?
Singapore has been an excellent place for the local and international banks to make huge profits. Does this suggest that the consumers in Singapore are contributing to these huge profits?
http://www.todayonline.com/Business/EDC120301-0000081/Singapore-helps-StanChart-hit-record-profit
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