This is how you make the world go round
How do I make the world go round?
You may have asked yourself this question a few times already: how come I make the world go round, simply because I put my money in the bank? It’s quite simple.
Through your banking, banks can give out loans to people to buy, build or renovate a home. Because of your banking, entrepreneurs are able to start up or finance their businesses and you help make their dreams come true. Because of your banking, the government is able to invest in windmill parks, new city parks, bicycle paths, child care facilities; the renovation or construction of schools and basketball courts in your neighbourhood,… and so on.
But to make all of that happen, you need a bank to connect all the actors.
The bank connects
The bank functions as an intermediary.
- On the one hand, there are people (and companies) who have money to spare. They want to put that money aside safely for later or get more out of it. So they want to save or invest.
- On the other hand, there are people who need money. They want money now, that they will pay back later. So they borrow money.
The bank brings these people together. It makes sure that people who have money left over can save it, and that people who need money can borrow it. This keeps the world and the economy going. But how does that work exactly? Watch the video below to find out.
Your savings in our economy
Your savings are used to keep our economy going. Banks convert your money - and the money of all other savers and investors - into loans to families, businesses and governments. That is how money keeps circulating.
Did you know that more than 89% of savings is converted into loans to families, companies and governments?
The banks have an important role to play in society. And they do fulfil that role.
Along with you and many others, banks think about the next generations. People want to invest their money in the world of the future. Banks translate that wish into sustainable products and valuable projects. People and banks find each other in projects involving urban development, care, climate and social services.
This is how you - together with the bank - keep the economy going! Because people and banks together make the world go round.