Bank Capital

Money-capital invested in operating banking business to obtain bank profit. Marx pointed out that the bank capitalist invests in a bank for the purpose of making a profit, and should make an average profit. Bank profit = interest income on loan–interest income on deposits–costs of banking business; it is a part of the surplus-value created by industrial workers in the production process. Bank capital is divided into own capital and borrowed capital according to property, and borrowed capital is all kinds of deposits absorbed by the bank, which is the main part of bank capital. Own capital is the capital invested by the bank capitalist to start the bank, which only accounts for a small part of the bank capital.

Bank capital played an important part in the development of the capitalist economy. By absorbing a large amount of idle capital from society and carrying out reorganization of capital, bank capital has accelerated the turnover of money-capital and contributed to the growth of capital accumulation, which has objectively played an important part in the development of the capitalist economy.