Topic: How is it possible to say there is no money in the bank - page 3. (Read 1379 times)

Generally, as you said, but if we as customers are still prioritized and if the supply runs out, they just take it back to their larger head office. There are also moments that create such conditions when many people need fiat in cash, for example during elections or other things, but personally I see that banks have anticipatory steps for important moments like this.

I don't believe that's how they do it with the money of their clients, banks work on a fractional reserve banking system which means that they only keep a part of the deposited money in the bank while they chip in a lot of it so they can lend it to borrowers, that's why banks can close prematurely during their operating hours especially at a time where a lot of people have withdrawn their money from the bank, they won't be able to accommodate everyone. Another reason why they work is because as I'd hate to say it, banks work on trust ever since, trust that they'll not invalidate you've got money in them by proving it through a piece of paper.

I think there is no money in the bank because the money is being used or invested by the bank without our knowledge, because the regulations are clear that banks can use their customers' money. I don't know what percentage the amount is but it can be done by them, maybe the regulations in each country are slightly different.

If you want to store wealth and keep it safe in terms of its value and also physically, of course the wiser choice is in certain assets such as gold and land and other assets too. Meanwhile, at the bank it is only used as temporary storage before we use it again for everything we need because in this day and age, almost everyone probably really needs the services available through the bank for the smooth running of business and other things.

And also other things that can make it easier for everyone when they want to spend something in large amounts or when they want to send large amounts of money to certain places that we need. So it is clear in this case that the bank is not a place to store money forever except only temporarily as a bridge to get to another place.

they only make some percent of cash available for withdrawal, when people want to withdraw big money in cash they should inform the bank before hand and make the bank trying to make it available.
the rest of the money when people are saving in the bank are being used to grow the money, giving loan to people and many more.
thats how it works, bank operational needs huge amount of money, so its kinda understandable because if it only runs from the charged monthly service fee im sure bank can't be as big as now and can't make many buildings for their office, its just that this sometime implicates a problem when there's money rush, when people trying to withdraw their money together massively, some bank will collapse, but honestly there's no point doing that, just trying to harm their own economy.

It's true that banks don't keep 100% of our money, they only keep 10-20% of our money, the rest they turn over or owe to other people. That's why if we want to withdraw all our money from the bank, it takes a week or more because the bank provides the money. First of all, that's the level of bullshit from banks. If one country withdraws all the money that is in the bank, the bank will be overwhelmed and go bankrupt. Many big banks have gone bankrupt. So be smart or look for assets to save your money so you can maintain your wealth.

This is not really about using fintech or mobile apps because there are times that you need cash to pay for stuffs that are very small price and you need cash for it. Moreover, if you live in a less developed country where the mobile app is not well in use,it is really difficult to transact online because most people reject transfer so your solution is to look for who would accept transfer for what you want to buy. At such times most people want to exchange with cash for the goods you are buying because they are also in need of cash. Again, the older age make it more difficult by the restrictions to have placed in their mind to prefer the traditional use of cash to mobile apps.

The rich might cringe at the prospect of their wealth in a bank, susceptible to bureaucracy's slow dance. However, stocks as an alternative? It doesn't work for everyone. Stocks offer liquidity but also volatility. Like a rollercoaster, it's thrilling but not for the faint of heart

Not simply huge piggy banks, are banks? More like jugglers, they balance loans and savings. Bank runs are like ripping a rug from under their feet, bringing them down and possibly the economy. Government guarantees provide a safety net. It's cozy like a blanket. However, it's not perfect. This digital age is making cash a vestige of a simpler time. Banks evolving is not weakness; it's a step toward the future. In nature and finance, adaptation is vital to survival

I don't think I've experience such with my bank and most often I make use of the fintech mobile banking app so there's no need waiting for a cash, have experience this when my country changed old naira notes and it was dramatic during the cashless policy, no one should actually go through this mess of cashless policy.
I believe if something like this happens bank workers will try their best to fix things so if you're actually worried you should exercise Patience. Talking about the old method of hiding money underground is not the best idea cause this act done by our forefathers was met to store their money for year and If possible their children will inherit the money, what I'm trying to say is we can have access to our money fixed in the bank freely anytime and anywhere but if you choose to hide your money underground it means you have limited access and control over your money.

OP As far as I know banks of all countries try to provide perfect customer service system. But in some countries such problems may arise in banks due to state problems. For example in our country at present cash withdrawal from banks is facing often problems and customers fail to withdraw their money on time. If a country's government and top government officials are involved in corruption, bank reserves are seen to go down day by day. As the current situation of our country is like this. Almost the banks are hostage to the government. Now if a bank in your country is hostage to the government then how can you expect anything good from that bank. OP if you are facing such problem in your country then you should not consider the old days system. Think about protecting your money with a new way of thinking.

its the important thing with diversification though rich people will definitely feel uneasy having all money in bank because they could hardly withdraw it or need to go through complicated process but if they just put it in stock as an investment then withdrawing money become easier since the liquidity is not depending on one entity.
i think the thing with bank is that due to the fact that they also give loan to people majority of the money aren't really being saved its being used to gain much more money therefore any bank rush will cause collapse.
but at the end of the day if the government guarantee that your money is safe by giving reimbursement if thing goes wrong, then I think its pretty much safe, the moreover money transfer is easier than ever, nobody deals with cash these days thats why i think bank provide less and less cash.

You head to the ATM, your card's swipin', PIN's tappin', and...nada. Zilch. Your hard-earned cash is MIA, leaving you colder than a snowball fight. Trust me, that's a feel-bad moment no one wants.

So, your question is loud and clear: how much faith can we put in our savings if we can't even, you know, access it when needed? And yeah, that's a valid concern, especially for long-term stashers.

Some folks are ditching the banks altogether, seeking refuge in the wild world of crypto. No third-party meddling, they say, just you and your coins, living your best financial life. Plus, the potential for growth is like, boom, outta this world.

It's not too good as it indicates that the digital numbers are by far greater than the physical.
What that means I hopefully do not have to spell out.

I often hear incidents like what you describe. The cash stock of fiat money is empty.. . Maybe this good to do, if we want to withdraw large amounts, we must confirm first with the bank in question. So, if it's the main bank, it might have a lot of buffer stock and it's enough. If the bank you're going to is a branch/unit, they might have a limited amount of daily cash stock.

If you don't mind which country is that?
In Venezuela we had some startups which grew. Now we have Cashea, and some Colombian bank which fill in the gap. Cashea fills the gap our credit card once filled. We have platinum Credit Cards which cover about 0.3 Cents.

When a banking system fails mostly there are several factors, in our case, apart of the banks we have closed minded people in key positions slowing development wherever they feel threatened  

Banks don't put all their customers' money in the Bank office, but in Central Bank or somewhere safe. Fractional banking is indeed a practice where banks keep only a fraction of their total deposits in reserve as cash that allows them to circulate the rest through loans and investments. In the digital age, the need for physical cash is diminishing as electronic transactions become more prevalent. This electronic system not only streamlines financial processes but also allows for quicker and more efficient circulation of money within the banking system.

Fractional banking is a mechanism where banks can leverage a portion of their deposits to extend loans and investments, contributing to the overall flow of money in the economy. While larger banks often operate with a limited amount of physical cash due to the prevalence of digital transactions, smaller banks and branches may still handle more physical currency based on their operational scale and customer preferences.

The production and regulatory system of finances is not an autonomous objectives for a country to just decide on their own to personally decide that to print a specific amount or total number monies of their desires instead at all ramifications, all national financial operative parliaments liases to bow with the financial regulatory orders from the World bank.
So, the world bank oversees the individual national financial authorities in order to maintain the values of money with valuable commodities to proper handling in exchanges.

Although, there are conscienceless sub financial regulatory authorities whom supercedes the financial governances in the local sectors (individual countries) who are more concerned to shovel the pools of finances specifically accumulate the national financial budgets mainly to the influencer and political individuals who seems to run the  nations to enriching itself more and more while the vulnerable faces the detriments of the flow of financial scarcities at when in need of money for financial transactions. Not even that the individual doesn't have money on his/bank account While the higher national and influencer allies of the nations redeems the money meant to be publicly speculated to their own detriments while the masses encounters its outcome of the none flow able finances without undermining the necessity of cash for financial transactions.

Other hand, due to financial regulatory conductive from the World bank down to the national financial authorities, a nation is liable to run out of finances basically due to economical systems and also considering the national budgets and also as the considering the financial revenues of the nation (s) to uphold the capitalized national budgets. So if the said nation is incompetent to generate the required money to execute its budgets, then they could tend to borrow elsewhere to fascinating their objective projects.

Living in small town give us difficult position when withdrawing cash money from the Bank, I have bad experienced need time waiting enough amount for withdrawing trough the Bank because they have small fund of cash money. I can't imagine what happen if not have cash money in the bank just amount of physical only with my living environment cash money is unusual payment transaction. Bank have make balance between their cash money ready if their costumer withdraw huge amount, its there not acceptable reason when some one want to withdraw their money with huge amount but bank need time for preparing cash money.

Dilemma when saving money in the bank but need cash we are need waiting longer time for withdrawing, bank have fix with this procedure and there are not limitation amount when costumer want to withdraw their money in the cash.

I don't know how safe it is to keep money in banks in unique countries but there is no safety in keeping money in banks in my country. Every bank in my country is short of money, when a person goes to the bank for money, the bank directly says that there is no money in the bank now, you can come later. Currently, the financial condition of my country is very critical. In this critical situation, keeping money in the bank is the most risky. My father had some money deposited in the bank, when I took him to withdraw, they said they can't pay me now, I have to come after a month. After a month I went and withdrew the money from the bank and left it at home. Because people's calamities can happen at any moment, if I can't withdraw money from the bank in case of calamities, then there is no point in keeping money in that bank. I want to tell every person from this Bangladesh that you who have prepared to keep money in bank or those who have kept money in bank withdraw all money and those who have prepared to keep money do not keep money in bank because keeping money in bank is most risky now.

Nope people have learnt that money in the bank does not generate too much interest.
You get 5 to 10% on all kind of investment platforms, some reliable, some not.