Loading...
-
Barclays needs central bank loan
Barclays says a technical problem forced it to borrow £1.6bn and denies it is facing a cash crisis.
Click here to read more... -
Re: Barclays forced to borrow.........
Ok, I am probably being a bit thick here, and I like things to be kept simple, so I just dont get this, allow me to type my musings
Banks make a mahooosive amount of profit, in the business world, profit is defined as the money left over from income when all your outgoings have been paid.
So if a bank/company/individual makes squillions in profit, then that is in essence a shed load of money sat in the bank that does not have a specific purpose cos all the bills have been paid etc.
So, if they are sat with all this money, then why do they have to borrow money? and another thing.... what do they use for collateral, I'm just confused that if they make millions, then have to borrow millions, then how do they convince someone that they can pay back the loan if the millions they have made is not enough to keep the company working?
Or do I have this all goofed up?
Comment
Tweet
Comment