Expenditures of Commercial Banks

Commercial banks make following expenditures in operating its business:

1) Giving interest to the clients on their deposits.

2) Giving interest to the central bank on the borrowed amount

3) Giving interest to commercial banks for the received loans.

4) Payment of salaries and allowances to the employees

5) Allowances of directions and mangers

6) Auditor's charges

7) Charges for cases or other legal measures for collecting unrecovered loans

8) Rent for offices and warehouses

9) Tariffs and taxes

10) Insurance Premium

11) Charges for making correspondence through post office, telephone, telex, fax, swift, etc.

12) Advertisement cost

13) Training charges of the employees