Do you think there's a massive cash inside the bank or they invest it?

[Starmix]

Banks don’t just keep massive amounts of cash sitting in their vaults. Cash sitting idle doesn't generate any income for the bank. Banks are in the business of making money, so they need to put their assets to work. Storing large amounts of cash poses security risks, such as theft and robbery. Banks need some cash on hand to meet the daily needs of their customers, such as withdrawals and transactions. However, this amount is typically a small percentage of their total assets.

The primary way banks make money is by lending money to individuals and businesses. They charge interest on these loans, which generates income for the bank. Banks invest in a variety of assets, such as government bonds, corporate bonds, and other securities. These investments generate income for the bank. Banks are required to hold a certain percentage of their deposits in reserve, either in vaults or at the central bank. These reserves are used to meet unexpected withdrawals and other obligations.

Banks may also invest in real estate, equipment, and other assets that are necessary for their operations. Banks keep cash on hand to meet operational needs, but the vast majority of their funds are used for lending and investing. This allows them to generate income and grow their assets.

 

[Springtime]

Banks do not keep massive amount of cash. To make profit, they need to lend money to individuals and businesses and earn interests. They also make investments to increase their profit.

 

[eLdavis]

I think it's a bit of both though, while they have some to invest in stocks and the likes, they also save some in the bank.

 

[Starmix]

Bank always have reserves as required by banking laws. These reserves are for future use. Also, there is daily withdrawals in banks via Automated machine and over the counter withdrawals to those who withdraw huge amount.