Banks as a new source of finance

BANKS AS A NEW SOURCE OF FINANCE

Banks now lend money to businesses and they have become investors.

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Yesterday, 1855, all around Europe and America, the banks have become investors in businesses and they have started lending money in return for interest.

The other day, in 1855, in all Europe and the U.S, the banks have started to lend money to the companies. They lent money to businesses in return for interest, meaning that they gain money in proportion of the quantity they lend and the time the companies take to refund it. The banks have also become investors in order to gain more money. They buy shares in businesses, so that they received a proportional part of the profits, or the losses, that company earns.