Topic: How is it possible to say there is no money in the bank - page 2. (Read 1272 times)

The truth is some times banks run out of cash due demand on cash and they only give out the cash that has been deposited by some one else
So it normal for banks to be with out cash and this normal happens during the seasons like X mass, Ramadan etc where people are celebrating and everyone is trying to withdraw money from the bank

We see weakness in many parts of the banking sector. But one positive thing is that the banking sector has progressed in line with the world in terms of technology. How many new features have been added in this sector now we can do banking activities at home. As we are not only dependent on branch network. As everyone prefers to do online transactions many do not have time to go to the bank so when such problems arise it is really annoying. Because of this problem many people are moving away from the banking sector.

Banks retain core capital which is largely based off risk assessment of the money.   Even the core capital can be a bond worth which in itself is a form of lending.  This was largely illustrated in 2008 when the core capital of a bank was mortgage debt and because it had been so mislabeled in its risk of default it caused many banks to fail in their operations.    They have changed the rules some now and generally the property market is not quite so skewed towards high risk lending as it was at that time but the overall lesson of debt leverage instability is not one we should forget.

Fractional reserve is the basis of western capitalism on every level the assets are rarely kept without leverage which means losses without recovery of the debt is especially dangerous to the balance sheets of banks.  I blame not private industry but government for the 2008 failure, it was a deliberate policy of the central government to propagate a stimulus effect in lending which caused harm and poor debt.   Mortgages are normally incredibly safe because its backed by an asset the but pricing of that asset itself was wrong and the entire market inflated beyond justification.
   It was a run away or feedback effect if anyone recognizes that scenario,  a pot that boils over is already half empty so its a false market in pricing & it causes collapse without question with no useful purpose or work occurring ie. alot of damage to the economy.

Some people think the entire modern system in national economies will reset for similar reasons.  Plain currency now in its modern form is essentially a bond, it can fail then too.  I dont know that occurs but its certainly true we lose value every year to inflation and it hurts people and benefits those with large debt operations like central government in effect we are being taxed by central banks by their policies.

It is possible because once you deposit your money in the bank, what you will now be seeing is the figures and bank make use of our money for borrowing and other business, the only concern I have with this is that they do all this without giving their customers a good interest rate, sure many people are not comfortable with what is happening in the banking sector including me but it wouldn't be wise save your money at home because of the risk involved instead of such options why not invest your money in bitcoin no matter how small it is, if you keep your money at home you may lose it totally may through armed robbers attack or unnecessary expenses due to the presence of the money, banking sector is no more trusted for so many reasons and the government understand this fact, that's you see fight against Bitcoin by the government is on the rise.

In fact that's what happened and the banks had no money and their whole system was in trouble. Why don't banks provide security for some people now because they think that when we need money they ask us to be patient.
People are starting to lose trust and banks are having more and more problems with service and in fact they always say the network has problems and the ATM machines can't dispense money.

Get used to making our money more productive than saving it all in the bank because we will be quite annoyed that when we need it they can't provide it.
In the new year it becomes more difficult to get access to banking because they make excuses and we only see the numbers in the savings book but never actually see the money, right?

Got a problem with than recently, It took me a 3 weeks just to have an access in my online banking account. I was the one walking and was disturbed because I had to call the landline and they were not satisfied, they still wanted me to go to the physical bank for signatures even though the nearest branch of the bank was very far from us. He is a hassle so what I did was I diversified even if it was just a savings account

You are very right! banks aren't keeping to the sweet words they say in their search for customers, imagine cutting huge sums from your account for maintenance, electronic charges while still debiting you for each transaction, still yet getting physical access to your money becomes a problem.

Some go without networks for long hours leaving the customers in frustration and this always happens when one has an urgent need for his or her money.

I don't know why some people are still saving some huge amount of money in the bank when they know that bank officials are using the money to do other business to make more profits before they will return back to start cutting the money to pay those that deposited the money in the bank.

But if bank officials are giving such excuse to their customers in the country, show that their government is not doing the right thing because any government that is working well, the government will always instruct the central bank to make money in circulation for banks and citizens to feel in their different businesses.

You stash your cash in a bank, thinking it's safe and sound. But here's the twist: they don't keep all your moolah on hand. They kinda use some of it to invest, hoping to grow it like a magic money tree. Cool, right? More moolah for everyone! But hold on, there's a catch. If everyone wants their cash back at once, or if their investments flop harder than a fish out of water, things can get dicey. They might not have enough cash to satisfy everyone's needs. Talk about an awkward silence at the ATM!

So, it's like a gamble, see? They bet on the market doing well, and if it does, everyone wins. But if it goes belly-up, your hard-earned cash could be at risk. That's why choosing a responsible bank is key, one with safety nets and stuff to protect your loot even if things get stormy.

I think the position of country that has no money in the bank at all is very difficult thing to accept and could be potential for the country to go bankrupt, all governments around the world have good concept in terms of financial transactions and the deficit they have in the bank, even in the past few years then in my country there was an issue of people wanting to withdraw all their money from the bank and this made the country very panicked before succeeding in convincing the public of the negative impacts that would occur in the future.
If banks do not have a cash deficit at all, there is the potential for the country to be destroyed and the impact that will occur will certainly be for society itself. Don't be fooled by the negative issue of withdrawing all the funds we have stored in the bank.

They don't have a single or just a few ventures so they get out of money if they lose money in some of their ventures, they don't lose money in the first place because they don't make investments or accept commodities and stuff that they know are not going to get them any profit in the first place, and even if they do it sometimes, they have a lot of ventures going on at one time and they earn more money than they might lose in some of those ventures.

So, this isn't more than an excuse if they say that they don't have any reserves left because they have lost money in their investment ventures because a bank can never get out of money because of their business structure which allows them to always have money in their reserves and they are supposed to have reserves for every single penny they have of their customers.

That's what most people do not know including OP. Once the money is deposited in a bank, it is not stored there indefinitely. As someone who has worked in a bank before, I know that the majority of the money deposited is usually transferred to the central bank. The bank only keeps a small percentage of the deposited money (usually a few million or more, depending on the size of the client's account) available for withdrawal by other clients.

Each bank is guaranteed to be connected to the central bank, where they also control the movement of both incoming and outgoing money and help if there are difficulties at the bank by providing assistance.So as you said, if the bank has no money, it is certain that all of it is usually used to be turned over and lent to customers to be able to profit from the interest generated.So it could be that money actually no longer exists, and the central bank should have to intervene so that there is no money vacuum in the bank if the mechanism is running properly.
Indeed, it often happens that many politicians play and manoeuvre banks for their own interests and their scope. It is difficult to monitor this because, once again, the power cannot and is not empowered by politicians, some of whom are also playing; this usually happens in developing countries.So the scarcity of money in banks always involves many sectors and is sometimes difficult to control if there is no good mechanism from the central bank.

many people don't know the reason why they are saying that there's no money in the bank it is because in the bank bankers use our money to trade and also borrow some people secondly the Central Bank of that particular nation maybe they are lacking printing of a new currency or the money is being hold my politicians for their own selfish interest this is one of the things that scarcity of money in a country so you cannot blame bankers that much because maybe they probably might come from the government not to them but sometimes bankers use our money for trading exchange mostly

There are very few benefits that we get if we save our money in the bank. In my opinion, the only thing that is profitable for us from saving our money in the bank is only security and more than that there is nothing and we are charged a monthly fee and also if we want to withdraw large amounts of course there are many requirements. which we must fulfill to be able to withdraw the money we save.

I think choosing to invest the money we have is much better than saving the money we have and not getting much profit and if we invest, of course this can provide benefits, especially if we have mastered the field we are going to invest in well.

In essence, the mission of banks is to create slavery and poverty, they subtly colonize when we are free but suffer more. Indeed, they have provided sufficient security, of course we have to give them something in return. The way the bank receives this reward from us is by charging an administration fee that we have to pay every month, and the interest given by the bank also tends to be small. So when we save money in the bank, the rate of increase in value we have is slow and the money we have does not increase. Not to mention what you said, when making large withdrawals takes a long time, it is prioritized as you said, but to make it a priority we have to report it first to the bank, right? Doesn't this make things difficult? So if you think about it again, there is no significant benefit from saving at the bank. It is better to invest in bitcoin which clearly has freedom and can create healthy finances in the future.

Several factors influence government decisions to choose foreign debt over domestic alternatives. Lower interest rates offered by foreign lenders, particularly for nations with strong credit ratings, can be a significant motivator. However, it's essential to remember that government borrowing abroad doesn't directly impact the availability of funds in domestic banks. Therefore, citizens shouldn't worry about personal loan access for emergencies like health issues due to government foreign debt.

Even so,the huge amount of money they used in making those investment can benefit them a lot.Its so true that the government might have borrowed money from the banks to carry on their business assigments.But the banks can never run out of money,no way.So long as 
Peoples businesses are carried on daily,they still use banking systems for their transactions despite how small it is.Its like totally restricting people from their hard earned income to carry out thier own activities.

If you visit a bank center in every big city, maybe every service will be prioritized even though you request a withdrawal of all funds at that bank and the bank still has a lot of cash reserves for withdrawals from each customer, but the problem is the bank branches that are operating in regions that have lower reserves and they manage the funds we save for savings and loan programs that benefit banks, we are only given low interest benefits. I have experience withdrawing all funds from the bank and the bank responds that they have to wait a few days because of the limited funds they have, I think it makes no sense if they have low reserves but we have kept all the money in savings.

Banks have reserve money for situations like these. Although of course a user wouldn't be able to get the money out of their savings accounts from the get-go as paperwork and processing days would need to be taken into consideration. But it's not gonna be used to track the people to which they lent your money onto.

Banks could lose money when they start to lose money in their investment ventures. As you know banks finance houses, cars, and basically every commodity that could generate income long as it's not perishable. When a debtor, someone who owes them money fails to pay for let's say, the house that they gave him to finance for, they have the ability to repossess said property and either put it up for sale or rent it out to other people. This is called a foreclosure of a property. Now, in very rare occasions when a bank couldn't find suitable, well-paying buyers nor capable customers who are interested in their offerings, their investments will slowly depreciate in value until they are worthless. This is but one of the most common (yet still rare) ways that a bank could lose their "money". But the thing is that for instances like these the government usually buys out whatever property they are at a loss on and gives them money in return, sometimes the government doesn't even take the property and just gives them money all because banks are an essential part of the capitalistic system.