Can corona virus or any other epidemic disease can collapse Banking? - page 5.

Xampeuu

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Quote from: hahay on March 02, 2020, 11:00:23 PM

Indeed, the corona virus greatly affects the stability of the world economy but will not make banks collapse, each individual and other institutions will still use banking for many purposes, so with the support still exists, banks will not easily collapse and the corona virus will really not make banks destroyed because of panic about the corona virus. Instead, thinking of the bank collapsing I think it would be better to immediately do the best and as quickly as possible to destroy the corona virus itself because honestly, this virus really is very disturbing.

the government certainly also has anticipatory steps, so it is very difficult to bring down banks, even though it is recognized that the economy is slowing down, and I think that will happen all over the world. but according to the latest news in the near future it is said that the vaccine will be released soon, and hopefully this will be a resurgence of normal life

Ailmand

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Coronavirus had affected a lot of countries already if a countries economy is affected so as banks. There had been major shut down and flights were canceled due to the fear of the spread. It may not totally cause banks to collapse but it will surely affect it's normal business operation due to the panic the virus is causing. Such epidemia shut downs businesses, travels, tourism and a lot more.

hahay

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Indeed, the corona virus greatly affects the stability of the world economy but will not make banks collapse, each individual and other institutions will still use banking for many purposes, so with the support still exists, banks will not easily collapse and the corona virus will really not make banks destroyed because of panic about the corona virus. Instead, thinking of the bank collapsing I think it would be better to immediately do the best and as quickly as possible to destroy the corona virus itself because honestly, this virus really is very disturbing.

abhiseshakana

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Quote from: Pffrt on February 29, 2020, 01:11:35 PM

Imagine Corona virus or any epidemic disease affected globally. As a result, all the economy will be affected and people will face hard time. Will not it bring an affect in economic balance? Which will turn into high inflation globally and it will result collapse of the banking system. Will it? In my country, the situation is getting worse for product which we are depended on China. I can see a significant inflation here if Corona Virus issue continued.

Coronavirus will not make the bank collapse. What can make a bank collapse is when the majority of people take all their money together. In addition, people do not save money in a bank virtually but only use bank safe deposit box services.

Isolation and restrictions due to a virus certainly disrupt the supply chain of production and consumption which in turn causes an economic slowdown. This condition will affect the banking industry, only banks with the practice of the interest system will continue to receive profits even though the numbers are declining.

The dependence on imported goods proved not to be a good thing. Learning from the trade war between China and America, Trump is trying to reduce its dependence on imported goods from China and roll back domestic industries that were previously killed by the onslaught of cheap products from China. Trade wars have indeed made the price of Chinese products in America more expensive which in turn has led to a reluctance to buy Chinese products and raised awareness to drive the American manufacturing industry.

criza

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There is indeed, a lot of factors that might affect the economic stability of a country. Likewise, an epidemic could really stop the economic transactions that is happening inside a country that could also affect other neighboring towns. Corona virus is a serious illness that is quickly spreading in and out of China, if this continues and it would not soon be cured, I think this could cause a lot of negative impacts not only in China but also, to the countries connected to it like what is happening to your own country. But, I don't think that banking could be easily go down because of it, yes it might affect the bank but, its organizers probably already have precautions set before the event happened.

akeda

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By looking at the current situation all countries have been wary of Corona viruses. This Virus is certainly a very scary threat. We have seen China's country and the country's economy has decreased due to viruses. Even so, I am not convinced that it can tear down the banking, I think it is very difficult and will not have any impact on banking.

The events that exist in China, have made many countries issue new regulations to improve security. Even this virus can be treated and many people who are affected by viruses can recover.

So my opinion about it that the Corona virus will not tear down the banking.

sedov1966

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Quote from: Hydrogen on March 02, 2020, 03:04:46 AM

The 2008 economic collapse was fueled by banks leveraged exposure to declining subprime real estate and other assorted markets.
If the corona virus negatively impacts markets bankers have leveraged positions in, it could be bad for them. History could repeat.
Derivatives markets today are not safer or better regulated than they were in 2008. Its entirely possible we could see a sequel.

We are quite close to see the sequel actually. Since factories in China stopped their working process it literally crashed crypto and stock markets right away.
The situation should normalize soon otherway we're going to meet the collapse again

Hydrogen

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The 2008 economic collapse was fueled by banks leveraged exposure to declining subprime real estate and other assorted markets.

If the corona virus negatively impacts markets bankers have leveraged positions in, it could be bad for them. History could repeat.

Derivatives markets today are not safer or better regulated than they were in 2008. Its entirely possible we could see a sequel.

bitgolden

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There is no way financial world gets absolutely no impact at all but isn't "collapse" a too much of a reaction? Even in China where this was felt the most it doesn't feel like collapsing. They have trillion dollar worth of biggest banks in the world and even they do not feel like getting affected all that much if you ask me. Their banks are going to continue just giving any sort of loan to anyone and the banks are still basically controlled by government so there is really nothing to worry about for them for now.

Even if it gets affected the billions of dollars of profit they are making will go down or maybe even write a loss season but since it is government backed nothing too bad could ever happen.

South Park

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Quote from: fiulpro on February 29, 2020, 01:55:06 PM

Unfortunately when a pandemic strikes and it goes around and strikes country after country not only banks but at the same time everything is bound to collapse , people are leaving their pets behind and fleeing .. the situation is uncontrollable in many countries.

I do think it can for sure cause a surge of prices inflation + at the same time no jobs will cause the whole system to collapse , where there won't be people to give service to or to provide any service to .

This, if a pandemic occurred that had a very high mortality rate then society as we know it will collapse and something new will have to come out of the ashes similar to what happened with the black death in Europe, however those world changing events are really rare and it does not seems like the coronavirus in its current form will have such an effect, however it is surely scaring people and making the stock market and even the price of bitcoin to go down for the time being.

DoublerHunter

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I do not really think Banking should be the first thing to worry about when it comes to these types of situations. Epidemic diseases spreading out is enough to be worried about human health and that is the most important one. People's health is more important than banking. And affecting the people's health and people having panic with the viruses will surely collapse the economy. Nevertheless, at this point, this epidemic didn't have much affect on the Banking sector.

crwth

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First of all, I don’t think it could happen today with the coronavirus. There are things to be considered.

How much is the damage that it cost globally?
Up to what extent can the country of origin go to solve this problem?
What is the cost to solve this problem?

It is quite essential to have instant liquidity when it comes to events like this. Probably it would also depend on the leader of the country on which the cases are happening and having a leader who knows what to do would help prevent the catastrophic things to happen. In this case, China has put all its resources or liquidated some of its bonds to have the capital to research on the solution of the problem. It is crucial to solving the problem with the scientific research behind them, and it is not going to be cheap for sure.

This might Affect the banking economy of China, but I don’t think it could cause the banking failure in the world. Probably the central bank of China would have that damage causing the value to decline.

In the end, no prediction would be 100%, so in my case, I don’t think it can collapse the banking sector for the financial aspect of the world. Maybe in a zombie outbreak, it might collapse?

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Yes, a pandemic can lead to a collapse of the banking sector. If corona virus were to be officially declared one my prediction would be an instant spike in the value of everything, from meds to food supplies as most people would be sticking up for a hibernation period. But in the subsequent weeks and months, this products would gradually drop as there would be a lack of demand for it and a huge supply. This would crash the value of money and other sectors. I don't think Bitcoin and cryptocurrency would be left out.

Countries which resists the outbreak could still have a flourishing economy despite the disaster.

Moshaid

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Definitely a global epidemic like corona virus will cause a huge disaster not just only to the economic or banking sector of a country but a great fall in the world economy as well. Same way situations like war cause a nation economy breakdown, a deadly disease as well can as cause such. Some country has already banned any gathering of huge people such as blockchain events which were supposed to take place in china some weeks back also some football events has been suspended while the fight against this virus is still on.

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Quote from: Darker45 on February 29, 2020, 11:06:36 PM

Quote from: Pffrt on February 29, 2020, 01:11:35 PM

Imagine Corona virus or any epidemic disease affected globally. As a result, all the economy will be affected and people will face hard time. Will not it bring an affect in economic balance? Which will turn into high inflation globally and it will result collapse of the banking system. Will it? In my country, the situation is getting worse for product which we are depended on China. I can see a significant inflation here if Corona Virus issue continued.

It affects the economy sorely, of course. It might cause high inflation considering that the production industry will be terribly affected. The banks will also be affected, of course. A lot of people are now trying to make ends meet using whatever they saved for the previous months and years. There will be much larger withdrawals than deposits. For sure, people will take their money from the banks because they badly need it. This is happening because the business sector, the main money-making sector of any society, is crippled by the spread of the virus. Many employee are laid off. And when people are deprived of their regular sources of income, the inflow of the banks will also get weak.

It has an effect to the economy, probably the disease will scare people and can result to a fear. But transferring, sending, doesn't require people to go out and have a physical transaction. If and only if people will withdraw the money for a personal needs or basic needs during epidemic disease. Banks are always open and active, they don't have any hard time manipulating our money. But the corona virus will surely increase the price of our personal needs like face mask, food, medicine, and etc., that's what you called inflation. Business minded people will take advantage of the disease and the banks will also surely benefit to that. Many employee will be harmed and they will have a hard time working.

exstasie

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Researchers are saying a pandemic could wipe out $1.1 trillion from the global GDP: https://markets.businessinsider.com/news/stocks/coronavirus-pandemic-economic-impact-global-growth-outlook-estimated-hit-2020-2-1028937457

That would cause bigger stock market declines and probably an overall multi-year recession, but I wouldn't automatically expect bank runs or banking collapses.

Quote from: The Sceptical Chymist on February 29, 2020, 02:22:26 PM

I think people are overreacting to the coronavirus outbreak, but that's not to say people shouldn't be concerned. The media tends to make this stuff front-page news in an attempt to scare people into continuously watching TV and checking the news. And yeah, I'm cynical about all of that. If this was a virus that was a deadly as HIV was back in the 80s-90s, or ebola, then I'd say all the worry is justified and it might affect the global economy.

But coronavirus? I don't think so.

There's been 1 death so far in the US. The flu kills something like 50K people per flu season. People do seem to be overreacting. Cheesy

Wexnident

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The economy would naturally be affected. Just the fear of a virus spreading around the globe giving deaths to various countries is enough to affect the economy of a country. Just look at how China has become.

https://www.nytimes.com/2020/02/17/business/china-coronavirus-economy.html

As seen clearly on the article, factories have closed down and those that are open or are trying to open are struggling to cope with the fear the virus has spread over the world. In this case though, what has caused the collapse of the economy of other countries is Fear, not the virus itself.

The media has spread news of the virus, most of which contain over the top reactions and comments regarding it. Some even give misleading headlines and some of the people who see them immediately share without even bothering to read the contents. Not to say that safety isn't important, but understanding the current events properly is a pre requisite to determining the proper way of sharing information with regards to the safety of others.

hugeblack

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I do not think that Corona virus is the same risk that the media describe, as the mortality rate did not exceed 3%, while some diseases, such as malaria, kill millions of people in Africa. Perhaps the main goal is to weaken the economy of some countries, make some pharmaceutical companies rich, or even occupy public opinion about many economic failures.
I am not saying that it is fake, but it does not deserve all this media amplification

davis196

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Can coronavirus cause the collapse of banking?No,I don't think so.This is just a virus with 2-3% death ratio and people can get cured.
Can a serious pandemic disease cause the collapse of the banking system?Yes,if it has a really high death ratio and people can't get cured,of course it can,but we haven't witnessed such global plague that would destroy the global economy and finances.Coronavirus is definitely NOT such a dangerous pandemic virus.

Findingnemo

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Still, Corona isn't declared as a pandemic disease but it does affect the economic worldwide even if the disease caused only in China so its a sign how every country's economy is connected to each other so if there is any deadly disease and cure for that diseases if not found yet then its deadliest situation for worldwide economy.

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