Why would a financial institution require a minimum balance for a checking account?

A financial institution may require a minimum balance for a checking account to ensure that customers maintain a certain level of funds, which helps the bank manage operational costs and risks. This requirement can also encourage account holders to save, promoting financial stability. Additionally, maintaining a minimum balance can help the bank generate interest income from the deposited funds. Lastly, it may reduce the frequency of low-balance accounts that can be costly for banks to manage.