Topic: Can corona virus or any other epidemic disease can collapse Banking? - page 4. (Read 763 times)

I think Coronavirus issues is too much emphasise compare to other deadly diseases that still has no cure. Well if this types of epidemic continuous to spread globally then it could probably threaten the economy and banking industry, but it is timely that crypto exist no contact, no problem and financial system can still continue despite the global threat.

yeah we all are wishing for that , the recovery of all but right now i still see that the virus still continues to spread slowly on other countries including now on ours  . this trend can affect the banking system especially on those country where virus is strong  but people doesnt have a choice but to continue living  , they still work but only they are wearing mask and other apparatus for protection   . we are now on the future and people already survived harder crisis on the past so as this crises that we currently have now

Everything is possible but that should be really extreme situation. We would need a far more serious and dangerous situation than we are having now with corona virus. If some catastophic scenario appears like plage was in middeval times or spanish flue after the world war I then humanity would really be in trouble and not only banks would be affected but every area of human activities that exist.

If epedimic cant collapse the whole humanity it cant collapse banking too

There are "fears of a global pandemic", according to some media sources, but I don't think spreading panic is a good idea in this (and in any) situation. Don't listen to journalists, rather see what medical professionals say:
 

COVID-19 must be taken seriously, no doubt about that, but panic is never helpful.

Now I have a feeling that this coronavirus can actually make global economic impact, but the reason for that might be not the virus itself, but the misleading media coverage.

I think yes if the disease like coronavirus becomes more prominent, it would affect our economy, all of the transactions physically will become passive because of the afraid of people to go outside their home, our deals will lessen because of a few people working on it. Well, if there is a virus the becomes so big in a way that it can transfer to the others, of course, most of the people will afraid and that and do not mind our economy.

Well said mate, if the virus separated to all over the world, then for sure it would be a big disaster, it will really affect our economy, there will be no workers that will go outside, for sure they will only stay on their home.

If there will be no working anymore, then our economy will fall for sure.

Indeed, the main thing that would affect this disaster or virus are the people, that would fall our market that leads to failure on our economy. It would be hard for us to recover from the accident if the virus stays so long on our land.

Recently, by the way, there was news that the 50 richest people in the world lost $ 444 billion in a week just against the backdrop of the coronavirus, which already claims to be a pandemic, given the very large foci in South Korea, Iran and Italy.

Absolutely yes, when we talk about global size catastrophe the value of money goes down and usual rich people invest in diamonds or gold.

For the balanced life in this planet, we must have everything should be working on its routine things and any disturbance will be happening in this cycle will be definitely impacting the economy of individuals and then their country's. When people are finding something abnormal and that is impacting to their day to day life, then that will slowly start impacting to their financial life too. For example, merchants will find low income because of low sales out.

Individuals are just the pillar of a nation's economy hence when individuals are getting impacted that will definitely result in impact of banking system and then collapse of economic of entire country.

That's what I've been saying. It's hilarious watching people freak out as if the world is ending!

For comparison, look at the swine flu pandemic that began in early 2009 and ended in late 2010. The CDC estimated afterwards ~61 million people in the US were infected and ~12,500 people died. https://en.wikipedia.org/wiki/2009_flu_pandemic#Follow-up

What happened to the stock markets at that time? It was a nonstop bull market recovery during the entire active pandemic period:




It sure is fun to speculate about though.

https://www.theguardian.com/world/2020/feb/19/coronavirus-could-cost-global-economy-1tn-in-lost-output

The economic impact cannot be determined right now because it is spreading to different countries and if they are not able to control the spread then it will have a major impact on the economy globally, even now the stock market is badly affected with the news of outbreak to Italy and other European countries and it will hit the manufacturing sector and it will have a major impact on the economy and i am expecting a recession in the coming months if it is not quarantined in time.

To some scope epidemics can collapse banking:

1. If companies have suspended operating, people will not get paid and some of them will cash out their savings and start living off them. If too many people will do so, banks will (due to the fact of the partial reserve standards) will not have money to pay their customers money. Such a situation with banks you have seen in Greece and Cyprus couple of years ago - as a result, there was daily cash out limit imposed on users (like 50 EUR per day or so).
2. In the longer-term effect, if companies are suspending their operations or are forced to shut down/operate for part-time only people will start losing their jobs, what has a domino effect: if the factory will reduce their staff or close, local restaurants or shops will lose customers and close as well. Many of the workers/owners of businesses have mortgages or other loans to pay. If you cannot pay off your mortgage, the bank takes over your estate and tries to sell it.
But what if there are hundreds of such houses and very few people willing to buy them at all? We have seen that during the last financial crisis in the USA. Banks bankrupt as a result.
3. If the death rate is very high, deceased do not pay their loans. If they leave no legal heirs who inherit property (and debts as well), no one will pay back to the bank. As well in a case (in some countries it is allowed) when the legal heir will resign from all inherited property and debts - the bank will not get back money.

These could heavily damage banking system.

Honestly maybe corona can't but if we have a virus that is very very lethal one day and spreads very easily, we could potentially have something that may hurt the baking industry a lot. However for that to happen we should be talking about something that is really lethal and not like corona, corona has a %4 or so death rate compared to infection rate which is why people like me do not really think it is too dangerous.

Certainly, you can still be careful about it but we need like a 20%+ rate in order to start feeling like world may get too dangerous and financial world may take a step back. I still think it wasn't really cured all that fast because it was in China but now that it is in west, there will be a cure very quickly.

If the Coronavirus causes a global pandemic, then the economy is going to get adversely impacted. But at the same time, I don't think that it is going to impact the banking sector in a disproportionate manner. Anyone remember what happened during the 2008 economic recession? The banks were impacted quite a lot. But they rebounded within a couple of years.

Yes. But just as a trigger. Reasons why current economic system will collapse are elsewhere, but those reasons need a trigger.  The fear from corona virus and with that fear, the closing of borders and stopping the trade can make it happen. Current economic system will collapse sooner or latter. It could be this year. in 5 years time or in 20 years time.

We are in the same situation because i think the world are suffering on that virus also know as corona virus (N'Cov) and we are all affected because of this disease even the banking and the other supply in china and even the crypto world are affected.

Obviously it is happening already, the slow phase of the economy of the list of countries with lockdown and ban travel orders.
The Airline industry sure lost a lot from this outbreak.

Some calamities can indeed affect the economy, but Coronavirus is not one of them. Around 3k people have died from it globally, but we know that from 12k to 61k people have died from the flu every year since 2010 in the US alone.

In short, this Coronavirus thing is a vastly over-hyped scare story the media force-feeding their readers and viewers with. It will hardly affect the economy, and surely it will not lead to collapse of banks.

Why would the Banks collapse if they know that they would be bailed out by government tax money.  

In any way, people are gullible and they will store their wealth in perceived safe havens like Banks, because they think it is safe. The Banks have unlimited "help" from Reserve Banks, so they know things will have to be very bad for them to fail. This virus is also not nearly as destructive as some previous viruses, like the Swine Flu epidemic and Banks survived that.     

The tax payers should be worried, because their burden will just increase as the global economy struggles and they will have to pay more taxes to carry the failed governments.

It's a fact, if affects humans it affects everything else! Viruses and diseases hurt humans, when humans are down everything else is down. China is good example for what is happening with their banks at the moment, but it's something that is logical cash is money in the physical form, so that means you have to be in contact with other people and exchange cash with them, in that way there are more chances for people to get infected.
There's no joke with epidemic or pandemic, everything can collapse if it hurts too many people on one place, it's not exaggerating if I say that cities can disappear like we watch in the movies.