Banks also have a bank. It’s the central bank. They store their reserves (your deposits) there.

Currently the banks are CHARGED interest rates from the central banks to deposit. So basically they lose money on your deposits. They don’t make anything off of your deposits.

The process of lowering interest rate by the central bank to stimulate the economy squeezes the bank profit margin and is extremely painful for their business model.

For example, in Japan interest rates have been low for decades and “banking” is now far less attractive and cool as a job as back in the old days. It’s a normal job like any other and not anymore a “special” job (the money you make in banking these days is nothing more than most other industries)

I see a lot of misinformation on this sub on “banks robbing us”. You’re actually suffering together with your bank. Back in the days of high interest rates, your bank was more than happy to give you 5%, 7%, 10%, 12%. They would be happy to continue to do so but they can’t if they literally lose money every time you deposit.