Revenue Generation of Prime Banks
The packages that the prime bank offers are beneficial for the clients and the brokerage is earned in the following two ways:
- One of the sources of income is by receiving fees for financially supporting client’s current position and also bycharging clearing fees in few of the cases.
- It also charges a certain amount of interest levied on the borrowed funds or securities.
Mode of Operation
The clients of Prime Banks or Prime Brokers are generally in need of certain technological aids for the purpose of portfolio management. Some services offered could be as simple as implementation of diligent routine work or as complex as provision of portfolio management in real-time. The institutions are required to work very closely with the brokers for the goal achievement. Although, these are the general specifications of Prime Banks, some offer even more expert services to specific consumers.
- High risk of repayment failures.
- Risk of operation.
- Risk of reputation.