Depositors facing double whammy of keeping savings and paying for bank losses

Depositors facing double whammy of keeping savings and paying for bank losses

The savings of people deposited in banks form the capital of banks which banks lend to borrowers. Banks earn interest on the loans issued to borrowers. The cost of operating expenses including salaries comes from this interest on the loans issued by banks. The saving account depositors receive interest on…

Depositors Paying the Price of Corporate Bad Loans

Depositors Paying the Price of Corporate Bad Loans

The primary objective of nationalization of banks was to reach out to each and every last person of our society. The purpose was to provide credit facilities to poor and marginalized sections and free them from the clutches of moneylenders. Banks were to provide credit to small and medium businesses.…