From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Tue Nov 04 2003 - 10:10:28 EST
Quoting Paul Cockshott <wpc@DCS.GLA.AC.UK>: > > Look at the accounts of the banks and see what portion of the wage bill is > met > out of bank charges. For the UK at least it is not enough to cover wages. > The wages are met out of a portion of the interest payments charged. > Hi Paul I was not thinking of bank charges. The idea is that the spread of interest rates generates sales revenue for the bank. The following comes from 'Concepts, Sources and Methods' http://www.statistics.gov.uk/downloads/theme_economy/Concepts_Sources_&_Methods.pdf "The output of financial institutions has always presented diffculties of measurement. Each successive revision of the system of economic accounts has come up with a different proposal for measurement. Neither national accountants nor economists seem entirely clear what it is that banks and financial intermediaries produce. SNS93 is no exception. It has proposed a measure called _financial intermediation services indirectly measured_ (FISIM). Under this proposal the _value added_ of financial institutions is seen as intermediation -- that is bringing together borrowers and lenders. Neither borrowers not lenders themselves are deemed to add value." There is more in the PDF -section 2.16 Phil
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