Finance Capital
Submitted on August 15, 2011
With its loan business, the banking industry achieves something remarkable. In its hands, money is capital — many times over. It makes the deposits of its cash depositors grow through interest payments. It puts money at the disposal of its loan customers, which strengthens their power to generate profits and both obligates and enables them to make interest payments. The net interest generated by the banking industry increases the capital with which it conducts its business.
