Banks spend the same amount of money in overhead and servicing costs for a deposit of $1,000 as for one of $1.50, but the larger deposit can yield more profit when it is lent out. In other words, a bank receiving three large deposits amounting to $500,000 from three big businesses spends less money and makes more profit off those deposits than a bank that receives $500,000 dollars of deposits from 5,000 people. Black banks had much higher operating costs than white banks because they spent more and earned less from their poor customers.
