Sorry bro can u explain abit in layman terms. I'm very bad with statistics and ratio.
loan is higher than deposit, simply...
loan is higher than deposit, simply...
you mean more people are taking loan from them then people depositing with them ? Don't make sense le if they ownself not enough money how they lend people ?
I think what is happening is that people are borrowing to buy assets because they are not confident in the future of the ringgit?
Now I always go up to JB to bully Malaysia with SGD. Shiok !
I think what is happening is that people are borrowing to buy assets because they are not confident in the future of the ringgit?
That is because you don't understand how banks create money.
Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.
In this way, money grows and flows throughout the community in a much greater amount than physically exists. That $100 makes a much larger ripple in the economy than you may realize!
http://money.howstuffworks.com/personal-finance/banking/bank1.htm
loan is higher than deposit, simply...
Sounds complicated to my small brain.
But that does not mean Msian bank gonna kaput even ringgit plunge.
That is because you don't understand how banks create money.
Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.
In this way, money grows and flows throughout the community in a much greater amount than physically exists. That $100 makes a much larger ripple in the economy than you may realize!
http://money.howstuffworks.com/personal-finance/banking/bank1.htm
Sounds complicated to my small brain.
But that does not mean Msian bank gonna kaput even ringgit plunge.
In that case, stick to your middle-aged men series. With the GE over, your middle-aged men series have become a box office guarantee in this forum.