What is the main source of profit for financial institutions?

Question

Quizplus · Accepted Answer

The main source of profit for financial institutions is the difference between the interest paid on deposits by the institution and the interest received on loans issued by the institution. This is commonly referred to as the interest rate spread, which represents the profit margin for the financial institution. Other sources of profit, such as ownership of real assets or stocks, may contribute to the institution's overall profitability, but they are not the primary source of profit. Similarly, fees charged for holding and servicing chequing accounts may generate revenue for the institution, but they are not the main source of profit.

What Is the Main Source of Profit for Financial Institutions