Banks make their profits not from their trading activities
( charging for clearing cheques and suchlike ) but from
lending out their depositors money. Hence they tend to show
a trading loss offset by profits on lending.
----------
> From: Gerald Levy <glevy@pratt.edu>
> To: ope-l@galaxy.csuchico.edu
> Cc: multiple recipients of list <ope-l@galaxy.csuchico.edu>
> Subject[OPE-L:5680] : banking
> Date: 05 November 1997 11:35
>
> Paul C wrote on Wed, 5 Nov:
>
> > Examination of the national income accounts will show quite clearly
> > that the banking sector runs at a net loss on its trading account,
>
> If this is the case, *why* is it the case? Also, is this the case only in
> the UK, or is it generally the case in advanced capitalist economies?
>
> In solidarity, Jerry
>