Commercial Bank Operations: How Banks Make Money
Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 17 shifts the book from financial markets to financial institutions. And it starts with the biggest ones: commercial banks. By total assets, they are the most important type of financial intermediary in the economy. Their core job is simple. Take money from people who have it (surplus units) and move it to people who need it (deficit units). But the way they do it is worth understanding.