Topic: Bulgarian banking system under attack - page 2. (Read 5232 times)

Do they owe europe a lot of money? The amount should be measured in terms of percentage of the German/UK economy, not the bulgaria economy.

Everything is okay until you ask to cash in your Fibank IOUs.

That is actually a great point. I'd suggest stocking up on WATER and canned food, everyone always forgets water (and you'll die from dehydration before starvation). You'd be surprised how much water/canned food even $40 USD can get you. Oh and make sure you neighbors don't see you stocking up on supplies

Buy extra food and supply just in case.

Hi,
Everything is stabilized today
I was to Fibank for my business account and checked verything is ok. No waiting on long tales anymore Please calm down
BR

It is small until someone find out it owed Germany or UK a lot of money.

bulggaria is not as high profile or a big (economy) of a country as greece is/was

This is the case anywhere that fractional reserve banking is instituted.

Banking is a confidence game. A panic doesn't necessarily follow logic.

Well in this case I don't want to know how bad the situation of those peers is... this could spread to other countries fast.

Gold and Bitcoin both jumping today. Coincidence?

Tell that to the guy on here who had 700,000€ taken from his account by the government.

It's not really an outright lie. "high levels of liquidity compared to its peers" and "increase the liquidity" does not necessarily mean, that all available cash covers all demand deposits. You can have a look at the publicly available data of the Bulgarian central bank to see that all available cash does NOT cover all demand deposits.

This is not how it works. A bank CREATES a loan against collateral (the common definition "out of nothing" is not correct) and this CREATES demand deposits. Cash in the same amount is never needed (only certain reserves by regulations).

A customer deposit is nothing else than a cash loan to the bank. The bank will tap this money, AFTER it created a loan and the loan amount goes to another institution or is paid out in cash (cash outflows).  If there is not enough cash deposits, the bank has to borrow cash from the central bank or other banks (creates interest expenses).  If there is too much cash deposits, the bank can pay back it's debt to the central bank or other banks (saves interest expenses) and lend excess money to the central bank and other banks (creates interest income). Cash is like a token to move demand deposits between institutions or between banks and the public. It is never needed in the same amount to maintain demand deposits (MZM >> M0). 

I deposit $10,000 cash into the Bank. Bank Clerk types "+$10,000" on the keyboard and the bank may pay it's liabilities/debt (to other customers, to the central bank, to other banks) the next second from my money. I get an IOU from the bank in return.

That statement is an outright lie. Authorities lie, because they can't do much else to stop the bank run. If only a fraction of the population demands their savings handed over, banks will collapse.

This should be taken very serious. Of course the World Cup comes in handy to distract the general public in Europe...

More bloody bailouts for a bankrupt country by the EU central bank,failed state helped out by a failed entity,you couldn't make it up,come on Bitcoin finish this game off

From the Guardian

EC approves credit line to support Bulgaria after bank runs
The European Commission has offered Bulgaria's banking system its assistance, to prevent the country's banking system sliding deeper into trouble, after last week's bank runs.

It announced this morning that it has approved a request from Bulgaria to extend a credit line of 3.3 billion levs (or £1.35bn), to support its banks.

The EC explained:

"The Commission concluded that the state aid implied by the provision of the credit line is proportionate and commensurate with the need to ensure sufficient liquidity in the banking system in the particular circumstances."

The authorities in Brussels also tried to calm savers' worries, having seen the queues that built up outside branches of two major Bulgarian banks in recent days.

It insisted that Bulgaria's banking system was:

"well capitalised and has high levels of liquidity compared to its peers in other member states. For precautionary reasons, Bulgaria has taken this measure to further increase the liquidity and safeguard its financial system".

The Bulgarian authorities have blamed the bank runs on people spreading mis-information. But there's no doubt people are worried

On Friday, many depositors at First Investment Bank, the country third-largest lender, dashed to withdraw their savings - forcing it to shut until this morning.

I would say worse: Many people in developed nations don't even keep enough food and water(!) for a single week. At the same time the supply chain today is much more fragile than it used to be, because storage capacities are kept at a minimum to optimize costs. Supermarkets will be emptied shortly after a serious event.

Btc-e uses Czech bank, which is part of the whole European mess.

I would be worry if I have any balance there.

The Banks worst fear, my greatest hope.


Though I would argue in all this Banks get too much blame. The bigger problem is more specifically Central Banks and Government entanglement with them.


Banks just did what they are supposed to do, make money. And they were supposed to lose it if they failed.

https://twitter.com/thisweekscoin/status/482613027972595712

Anyone who is stupid enough to have money in a European bank probably deserves to be screwed.


The banking collapse already happened back in 2008 where we had the big financial boys make runs on the banks. Its already happened. People will wake up one day and find out all their money is gone, its inevitable. People gonna learn what fractional reserve banking is pretty soon.