Date: 2025-10-14 Page is: DBtxt003.php txt00018117
Banking
What you should know
7 Hidden Facts About Banks That Super Rich People Know ... You might know some but others may surprise you
Peter Burgess
br> This is one of the major problems we have in today’s society. The gross inequality in income and lifestyle that plagues this world is the result. Nothing can completely close the gap between the rich and the poor. That is the reality. That gap will always exist as long as this world continues to be. However, the misnomer is the inadequacy of the merit system.
br> We designed the merit system to allow the best people to rise and thrive. However, the problems begin when that very system blocks the way of some people while it gives others an effortless lift. This happens with the issue of money.
br> There is no education in schools about money. Part of the reason is if you are really qualified to teach it, you probably won’t be a schoolteacher. Some say it is some powerful organization of people who won’t let this happen. But we all know that if you don’t know how money works, you won’t get far in life.
br> Banks are the custodians of money in this world. Almost everyone uses a bank one way or another. But not everyone knows how they really operate. You can choose not to care and focus on the broken system of merit. But if you do, you have the same unfair advantages that the super-rich have.
br> Here are a few of some hidden facts about banks that the super-rich knows. They are all from the experiences of some very wealthy people.
br> 1. Banks have a quota they must give out in loans every year
br> As far as the general public is concerned, the bank plays a simple game. They let people keep their money in the bank at a small interest and they loan that money out to other people at a slightly higher interest. The difference between the two interests is their gain.
br> That sounds simple. It means the gain of the bank is dependent on how much money is kept in it and how much loans they give out. So, there are two ends to grow a bank. The first is to increase the money that comes in. And this is achieved by having more and more people open an account with the bank (and use it).
br> The other end of growth is to give out more money as loans. So, what does that mean? It means when a bank is gaining a lot of customers, they also need people who will come and take loans from them. And of course, they want people who can repay (as slowly as possible). The longer the length of repayment, the more the interest.
br> This is why banks have a quota they must give out in loans every year. Just as they have targets of new accounts, they have targets of loans. The only problem is that they don’t publicize that as much. But rich people know this.
br> Of course, the bank turns down lots of loan applications. (More on the reason later). But they actually need them as much as they need the new accounts.
br> There is a rumor that banks are more likely to accept loan applications made towards the end of the year. This is because in most cases, they will still be miles ahead of reaching their loan targets.
br> 2. Each bank branch has a lending limit
br> All bank branches are not equal. The titles of ‘regional manager’, ‘branch manager’, etc., are not mere titles. There is a limit to the amount a bank manager can approve for you. If the amount you are asking for is higher than what he can approve, you will be denied.
br> The interesting part of that is you may not be given a reason for the denial. And you will be thinking it was you who did something wrong. In some other cases, if your deal is really good, the manager will transfer you to a superior to deal with. But they owe you no explanation to deny an application.
br> Another funny case is when the bank has already loaned money out up to its lending limit. It doesn’t matter how much metrics and facts you have to back yourself up, your application will be denied. The bank cannot exceed its lending limit. The limit could be extended, but it will certainly not be because you asked.
br> 3. The central bank will always bail out big banks
br> This should be evident to everyone now. You could fight it and protest about it, but I doubt if it will ever change. Instead of fighting it, why not embrace it? It is going to be there whether you embrace it or not.
br> There is the Federal Reserve Bank of America, Bank of England, European Central Bank, Bank of Japan, and so on. They are the central banks of the world. And they will always save the big regular banks (commercial, etc.) when at the brink of a fall. With what? Well, let’s just say; the power that becomes money.
br> Big banks always get a bailout. That shows they will always have money to shove out. You may not like that fact, but it is the world as we know it today.
br> 4. Banks don’t keep money
br> Initially, banks were marketed to the public as a place to keep your money. Today, we use banks because of the ease of using money anywhere and anytime. That is why they all have cards. Even more interesting is the fact that they are trying to discourage cash. So people have a lesser consciousness of loss when they exchange their money for anything. It makes transactions easy and makes life comfortable. But it also allows for more dangerous games to be played with money.
br> Banks don’t keep the money. They make it circulate. Everybody knows that now. But they really don’t know the implication. It means you are not the only one that has access to your money in the bank. The government now has some level of control over your money.
br> This is why the super-rich finds ways to protect their wealth.
br> 5. The biggest clients of the banks are banks
br> Banks exist to serve themselves. Serving you is secondary. All the money brought into a bank becomes an asset of the bank. All the money loaned out of a bank is an asset of the bank. The game is almost “un-lose-able” for them.
br> This makes the bank always act in its own interest always. The bank can never fight for the one who keeps money in it. The bank fights for more control and interest. This is because when your money enters the bank, it is no longer yours. It is still your money but now it is their asset.
br> The lending limit of a bank is always related to how much is deposited in it. And the ratio is always unfair.
br> 6. Bankers get a yearly bonus based on the performing loans they give
br> Definitely, this can’t be all bankers. It would be those vested with that responsibility. It is often the managers. And this is not a bad thing.
br> The bonus is based on the loans given out. Of course, it wouldn’t be bad loans. The catch here is that every banker wants that bonus at the end of the year. This is why they will more readily accept loan applications towards the end of the year (if they are still far from their target).
br> In most cases, these patterns are not conscious. The banker at the beginning of the year has no pressure to approve loans. But towards the end of the year, they have their bonus to forfeit if they don’t approve enough loans. A greater reason is the fact that no one wants to be known as inadequate or incompetent in their duty.
br> Look at it this way; if you don’t come and get money from the bank, the bankers are going to miss their yearly bonus. This is how the super-rich sees it. And they keep walking into the bank to get every ounce of money they can. After all, they have the required collateral and credibility.
br> 7. Banks don’t give money to people who LOOK poor
br> Bankers are the most impeccably dressed professionals in the world. And they are also trained (consciously or unconsciously) to see people that way. If you look poor, banks won’t want to give you money.
br> Banks are big on judging people by looks. That is why they don’t joke with their looks in the first place. They believe in first impressions a lot and they are also swept over by the first impression.
br> If you look like you need the money, they will probably not give it to you. If you look like you don’t actually need their money, they will bring it to you. I have seen cases where the bankers come to ask people to take loans from them. It happens a lot. But it is those they think are rich because they look rich.
br> The only exception to this rule is if you have an account in the bank. Then they can really see your account to know whether you are truly rich or not. But if not, they rate you with their eyes. And they can add up things about you pretty quickly based on what they are looking it.
br> The lesson here is to not walk into a bank looking broke, even if you are. This is why the super-rich display wealth in their dressing.
br> The bank is only an institution. Ignorance is the enemy of the people.
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br> Copywriter. I study why people buy. Connect with me → linkedin.com/in/davidolarinoye. P.S. I have other interests too