Investing in ASX bank shares // The Motley Fool Australia
What are ASX bank shares?
A bank stock is a share in a financial institution that takes deposits and makes loans to individuals and businesses. In addition to those main activities, Australian banks are involved in many other aspects of the financial system, such as stockbroking, wealth management, and insurance.
Banks serve a critical social need but have business models that are relatively simple to understand. In essence, banks make money by taking deposits and lending money, profiting from the difference in interest rates.
Why invest in them?
Bank shares can be rewarding long-term investments, especially for investors seeking passive income. Australian bank shares have a long history of paying attractive dividends,…
