Bank Run coming soon?

[harimau]

 

[xebay11]

Malaysia only right?

 

[eErotica69]

This is what fucktard Tonychat and his ball-less parents gets when they vote for UMNO.

 

[harimau]

 

[chootchiew]

Sorry bro can u explain abit in layman terms. I'm very bad with statistics and ratio.

 

[dancingshoes]

Sorry bro can u explain abit in layman terms. I'm very bad with statistics and ratio.

loan is higher than deposit, simply...

 

[Hans168]

loan is higher than deposit, simply...

economy in overdrive what...

 

[chootchiew]

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 ?

 

[NanoSpeed]

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 ?

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

 

[johnny333]

I think what is happening is that people are borrowing to buy assets because they are not confident in the future of the ringgit?

 

[NanoSpeed]

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 !

 

[johnny333]

Now I always go up to JB to bully Malaysia with SGD. Shiok !

In the past I would go there often but with the haze I am looking at going further north e.g. BKK, Chiangmai, Pattaya

 

[kopirui]

siao liao
i have $100 in maybank
safe or not?

 

[MovieStar]

I think what is happening is that people are borrowing to buy assets because they are not confident in the future of the ringgit?

not too sure about whether confidence level in ringgit dropped.

but i knew that malaysia FD rate is much much higher than sg..so that is why i stupid put my money in Malaysia FD, who knew now currency losses is much more higher than the FD yield

ok, also malaysia loan interest rate also much much higher than sg. well, people still borrow to invest, probably. because all think property easier and faster way to grow rich eg..iskandar housing is forming a bubble now.

also, most malaysian own at least one car or more..this will also increase loan.

 

[chootchiew]

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.

 

[looneytan]

loan is higher than deposit, simply...

this is what happen when PAP's cronies are in charge

 

[NanoSpeed]

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.

 

[MovieStar]

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 good. but too much loan is risky.
default risk is higher, may incur more bad debt.

with the current economy condition in malaysia. i think Bank Negara of malaysia more worried about bad debts..

no read income increase while debt is increasing..something bad.

 

[Cerebral]

Sounds complicated to my small brain.
But that does not mean Msian bank gonna kaput even ringgit plunge.

It means they are highly geared. Before thenlast collapse, bank's gearing is up to 40+×

 

[chootchiew]

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.

haha must add gentlemen, normal middle age lasup uncle can forget it LOL.