Topic: How is it possible to say there is no money in the bank - page 8. (Read 1358 times)

I think you have an idea of what this is even though government could be selfish not to do the real thing. When they say no money like I said also to what idea you have dropped, they could be having a different financial policy at that point in time but it will not be made public to every body, only to few top officials of the government. Also, the government may be discouraging cash flowing physically but encouraging online transaction as a global practice and also the use of CBDC which is a digital financial policy also.

I'm no expert with banks but this could happen probably because of what kind of transaction they mostly have for the day. For example, if this certain branch of a bank has been receiving withdrawal transactions then you come there, also asking for withdrawal. And given your example, that you need to withdraw a big amount of money from your account, it's possible that they won't have enough money at that moment to give you. But I think in this kind of scenario, it's best for you to try reaching to other branches cause they might have enough cash.

When they say they have no money, it doesn't necessarily mean that they're out of funds. It's just that some or most of the funds they have are in digital. What it means is they have no enough physical cash. That's why most of the time, big accounts who wants to withdraw huge amount of money, they inform banks beforehand so when they come to that branch, they're ready.

Banks use fractional reserve banking, which means they don't hold all depositors' money. Instead, they lend heavily. This approach works effectively, but in economic downturns or crises, too many people withdrawing money at once may leave the bank short on cash. It reflects economic issues, not the bank's unreliability

Regarding government funds, separate issue. Governments often award enormous project budgets, but the money isn't always stashed. State investments and activities are involved. A government running out of finances usually indicates its income (such taxes) aren't enough to cover its expenses, requiring borrowing. This doesn't mean banks are safe or reliable places to store money, but understanding these dynamics helps explain why these situations happen

I don't know what country you are from, but the country I live in has a lot of the problems you point out. Keep as much money as you want in the bank, but you have to face many problems while withdrawing. Many times the money cannot be withdrawn due to a malfunction in the bank's system. In case of emergency, chances are high that you will not get money in the bank and often you have to face problems due to rush, because our system is such that people are withdrawing money all the time. There are often long queues outside banks and ATM machines.

It is difficult to go back to the system like old days but banks should try to improve their system as much as possible. However, the necessary money should always be already available at home, because in case of emergency, you may face failure from the bank. People are not satisfied with the system because they have to go through painful steps to withdraw their money. The bank system is running on our money and yours, but the account holder has no value. We keep money in the bank under compulsion, because we have no other safe way.

OP, which country are you? Well, I guess this looks more like Nigeria of the present, regardless, you are not correct with most of your narrations and concerns. I am not exonerating anyone here, and of course, it is the responsibility of the government and central bank of every country for money to be available to the economy and for citizens to have access to the same but it is not always like that and what most of you think is only a layman thought. Although you wouldn't be told, there are times that the central bank would inject more money into the economy/circulation and there are times they mop it out. They are policies to ensure that excess money or low money is not in circulation depending on the status of the economy.

At times, it might be to encourage cashless policies, and this doesn't mean you do not have or own your money but means that you can spend it through other channels/means. I do not see any evil here or as a reason to paint banks badly, and in this technological gap, I believe that most transactions for a literate person should even be through electronic means if they have access to it, and not through cash. Cash payments should only be secondary in a way that will supplement your payments. I have been planning my transactions according to the situation at my disposal instead of complaining, and this has been easier since even market women are now collecting electronic transfers to say how easy it is now. Only a little cash is needed by the smart ones these days.

This is very unreasonable, I have never seen a case of personal spending for a purpose that went unresolved. I believe that within the range of $100000, any bank is always ready to solve your problem, they always have money in reserve and can mobilize the exact amount you deposit within that range. Of course, in large amounts of millions, hundreds of millions of dollars, it takes time, but let's be realistic, no one falls into such situations, banks have their problems but it's up to you how to express them. It's just an imposition, so the bank looks like the bad side. I'm not sure if the current economic system would exist without the operation of banks. Problems from cypto, gold, real estate,... all have a connection that cannot be separated from each other. In banking, I believe in harmony, not competition, as long as everyone feels it fits their needs.

In this present financial era, most central banks are encouraging people to limit the use of cash. Bank customers are encouraged to use different transaction platforms such as the use of POS, ATMs and online channels to carry out financial transactions. I assume that the problem your economy has is that the majority of payments are done through cash, so when there is less money in circulation people begin to suffer.

Keeping or hiding cash in your home is risky because the rate of crime has also increased in society. If criminals have information that you have a huge amount in your home, I think you might become a cheap target. Banks will never be reliable because they are centralised organisations. We just have to endure these challenges until Bitcoin adoption gains more ground in your location.     

Is the only method of payment in your country cash? The bank can say that there is no money (cash) because the cash cycle requires a balance between deposits and withdrawals, but not accepting any service through bank payment methods means the weakness of the central bank’s policy, even if the bank does not contain cash. You must be able to make bank transfers to hospitals, schools, universities, and markets easily, and you must be able to withdraw from other branches easily. As for the bankruptcy of banks, it may happen, and then the government intervenes to guarantee the depositors’ money and withdraw and sell the bank’s assets to recover part of the investors’ money.

"How is it possible to say there is no money in the bank" - very easy. The bank, as a commercial organization, tries to get the maximum benefit. To do this, it takes money from investors, for which it pays them small interest, and then gives this money for use to borrowers, at a high interest rate. Essentially, the bank acts as an intermediary, renting your money to others, thereby enriching itself. It is a mistake to believe that a bank is a place to store money. If all the bank’s clients demand the return of their money, then any bank will go bankrupt, because it will not be able to do this at once, because the clients’ money is invested both in the short and long term in other banks, real estate, construction, projects, etc., etc.

Banks have never been a safe place. Anyone you give your money to for safekeeping and for a time is already unsafe.

Quite the contrary, traditionally, banks are trusted and most people use this. It is only due to this trust that banks hold on and prosper. Having lost trust, clients will run away with their money and banks will remain nothing (that is, without your money - without a tool for banks to make money).

The banking system is already very deeply integrated into the lives of most people, and people will not abandon this so quickly and not so soon (if this is possible in principle). Only a few, having realized the harm and danger of banks for themselves, switch to alternative options, like crypto.

Banks do not really have all the physical money at hand a part of your money that you deposited are being used to give loans to other people banks do not make money only the central bank can do that so if you were to say you!re going to withdraw all your money it is possible that they do not have the exact amount of money you deposited on their hands

It puts things in perspective, can you suddenly withdraw your money in case something goes wrong or you really need it? Probably not which allows us to reflect on the uses of bitcoin and other altcoins

Not only is our money growing, we can also trust that our money is just with us technically speaking and we can take it out whenever we want

Banks do run out of cash for so many reasons and comparing banks to natural stuff like rivers producing water is damm parallel.
If my assertion is not wrong, the scarcity of money in most banks is as a result of them exhausting their daily limit as a result of the increased demand coming from the customers.

I feel that the central bank always gives out a certain amount of cash to each commercial bank on a particular bases and ones they give out those amount of physical cash, you might find out that their is no longer money in circulation. But if you're doing mobile banking, you can always make transfer and buy whatever you want. I haven't seem people restriction from making transfers just because their is no cash in the bank.

After reading the thought about the river, I also had an association with dried-up rivers; in my country, this is a fairly common occurrence. So, OP, stop being surprised. Your post history shows that you are from Nigeria. Such problems with the shortage of fiat currency did not arise yesterday; this was reported already at the beginning of 2023. It's sad that the government can't or won't fix the financial structure in your country, but as an alternative, you can watch your brothers explore investing in Bitcoin. This will be completely out of the control of the banks, especially since the recent news regarding Bitcoin in your country has been very positive.

If there is no water coming from the originating source then the river would be empty and haven't you seen any river that dried completely?

Just like the government proposing the budget for the upcoming projects doesn't mean they already have enough money to do so, they assume if everything goes well there will be enough funds to cover the expenses of the projects.

And this has nothing to do with whether the money is available in the banks or not.

Can you verify if the river has water? yes, you only need to go to the river and you can see it using your own eyes.

Can you verify if the bank has money? if yes, then how? we can only see the amounts on screen or passbook, if you have $2,000,000,000 in banks how can I see that?

You're just own an IOU, not the actual money.

The majority of countries use loans from strong first world countries to fund their large government projects or to supplement their national budget. The government expenses are usually a lot more than what taxpayers can contribute to the national budget, so then loans are used to make up for the deficit.

Banks also never keep all the money that are deposited, they loan that money to other people and only keep a small % of that to honor withdrawals. If there are a "Bank Run" and a lot of people start withdrawing money at the same time, then they can run out of money. 

Almost everyone knows what happens to a saving holders when he goes to the bank to withdraw his own money and doesn't get the money. My question is how much trust can I place with money hard earned money if I don't get it when I need it? This thread may be instructive for those planning to keep money in the bank for the long term.

Nowadays people do not want any third party intervention in their financial affairs. And this opportunity exists only on crypto platforms. Especially those who want to save money for long term. Here an investor will get an opportunity to save money as well as increase his savings by investing here. Centralized platform for money is never completely secure. The government of any country can harm the common investors by enacting any law if wants. so alternative measures must be taken to avoid the risk.

In fact that is what happens and banks only store cash value not physical money in their safes. I have experience with this and when I wanted to withdraw money from the bank the workers there said they had to wait because there was not enough money in their safe, so they had to contact the branch to ask for cash to be brought.

In the past people didn't save money but instead bought gold to store it and previous people's experience really didn't like saving money in the bank. This system has developed and banks have become the safest place for people to save money, but on the other hand there are concerns about how our money can be lost due to certain factors that occur and even though they insure our money.

If you are worried about that then it is best to save enough money in the bank and use the rest to invest in places with greater potential, such as buying gold, bitcoin or land because this concept will be much more productive in maintaining value.

Banks are controlled by the government and when government want to regulate some of their financial policy, it is through the banks that they do it. So it could be a reason of such regulation, perhaps trying to control the amount of money in circulation to reduce inflation because it is an economic idealogy that if there is too much money in the economy, it could be the reason for inflation and to reduce it is to make the flow of money reduced which is not without its own effect.

Another possible reason is that government may have loan huge amount of money to some big investors through the banks. You know government is secretive and such could be going on without the public being aware, they divert the minds of the public with different stories.

I still have a lot to learn from economics and when they say that there's no money in the bank, that probably is right. Not just because they are the banks, they're still liquid but most of their money are in their assets and it takes time to liquidate all of those. I guess that is what they mean when people say that there's no money in the bank and a lot of huge depositors have withdrawn their money from them.

With my understanding on this, each country is totally run by debt and they are paying all of it once the project is done and operational and profits from there is automatically distributed to the debt with the interest. This is not an unusual method and process for most countries especially the third world and the developing countries. But look even with the first world countries, they're maximizing their debts for their projects too. And not all the money from the banks can be lent to the government, they still need to reserve huge amount for their own business and simply for having a reserve.

I haven't encountered this situation but it could be possible that someone has dealt with this before. But I don't think that the bank will just decline you for no reason. And don't rely on your debt score but it's better not rely on it and just make yourseld debt free and have more funds ready to get spent for anything.

We have to deal with it my brother. This kinds of challenges is what we experience by using traditional decentralized system. I will not advise you to adopt the old means of saving money in your house because it's more risky to keep your money in the house. If you keep your money in the bank, robbers will not have free access to carry out robbery but even if such incident happens and some money was stolen, the money in your account balance will still be there and the bank will provide it. If you keep your money In the house and thief steals it from you, you will not get that money back.