Cryptocurrency Q&A
Why do banks charge minimum balance fees?
Why do banks charge minimum balance fees?
EchoPulse
Sat Oct 19 2024
|
7 answers
941
I've noticed that some banks charge fees if your account balance falls below a certain minimum. I'm wondering why they do this. Is it just to make more money or are there other reasons behind it?
7 answers
EthereumLegend
Sun Oct 20 2024
Banks impose minimum balance requirements for multiple purposes. One of the primary reasons is to ensure they have a sufficient amount of deposits.
Was this helpful?
381
20
DigitalDynasty
Sun Oct 20 2024
These ratios ensure the stability and solvency of the banking system, protecting depositors' funds and maintaining public trust.
Was this helpful?
95
48
HanRiverVision
Sun Oct 20 2024
These deposits serve as a foundation for the bank's lending activities, enabling them to extend credit to individuals and businesses.
Was this helpful?
59
62
Lorenzo
Sun Oct 20 2024
Banks also benefit financially from minimum balance requirements as they can charge fees when customers fail to maintain the required balances.
Was this helpful?
105
83
Pietro
Sun Oct 20 2024
With more deposits, banks can increase their lending capacity, thereby contributing to economic growth and development.
Was this helpful?
42
31
Load 5 more related questions
