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so Banks make their profits in a bunch of different ways one of their largest profit centers is something called Nims net interest margins net interest margins is basically the difference between what you pay in interest and what you receive in interest from your bank and they have these clever ways to torque up the amount that they received from you and reduce the amount that they pay you one of the ways they they can reduce the amount that they pay you is by receiving money from the bank of Canada to supplement the money they have of yours and multiply the money that they have of yours by factors of in some cases a hundred in order to lend it back out