Tangya shook her head. "Do you know what the essence of bank profitability is?"
"I get it!" Luofeng said. "Your bank makes money from the interest spread—low interest rates for savings account customers, high interest rates for loan customers—and then you earn the difference, right?"
Tangya nodded affirmatively. "That's correct!"
"Our bank offers your family 2.5% per year for six years! That's a total of fifteen percent interest, amounting to a full 300 million Yuan. It looks like we're guaranteed to profit from your deposit, but theoretically, for the bank, it's a loss!" Tangya said.
Luofeng nodded in understanding.
Theoretically, the bank would lose around 30 million Yuan on this deal.
But in reality, that wouldn't happen.
Because hardly any depositor would deposit a lump sum for six years, let alone 2 billion Yuan in funds.
The bank would still make money.
A large number of retail customers provided their opportunity to earn.
