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Due to pandemic, there’s lockdown going on here. People are more likely to withdraw fund from Bank while rate of deposit is decreasing now. On a side note, default loan has been alarming here.
I was looking for cash out BDT from mobile banking but I had to look for a long area to find out a mobile banking agent. I felt like I should cash out more money than I need for now because it’s possible that there will be no agent opening their shop.
The same will also happen with the banking system if situation get severe which possibly will be soon. And if the lockdown continues for months, won't bank have hard time maintaining deposit and withdraw?
What do you think? Is it possible that if lockdown continues, banking system will collapse here?

At current the exchange rate for bdt to usd looks stable. If you've got a lot of cash you might be able to find a European bank that you can save euros in (after converting - if converting isn't too expensive).

It's possible if loan default is increasing or the bank's surplus is decreasing (such as more withdrawals than deposits) that:
1. The bank just collapses
2. The central bank just starts printing money to bail everyone out

The second is the most likely but I'm not sure if that'd cause an inflation problem or not (although I doubt it would since people might not want to risk their funds straight away if they lost the last time).

I don't think so, aren't most banks around the world works based on the idea of fractional banking system where they can borrow money even though they don't have any collateral to put for the money? If so, I don't think that the Bangladesh's Central Bank will collapse because the government will definitely come to their aid.

You have kept saying here without mentioning your country or location. I don't know of the country still on such severe lockdown as you put it but I believe bank is very important to daily lives and anything that will affect it's total closure will amount into more severe, dangerous and chaos situation. Banks provide essential service of providing cash flow around the system and so the government are wise and knowledgeable not to have a total closure of means to financial transaction because both in health , illhealth or death, financial transaction must go on.

The banking system of the whole world is about to collapse, it's not something new, when we talk about Bangladesh the whole situation is extremely weak. The government is not able to handle this situation and people are bound to jobs that pays them way less than their value.

The poverty is on the rise and at the same time the socio-economic crisis is something that would take years to resolve. Plus it's adjacent to India where covid situation is extremely bad.

Even if the banks collapses I do think they will be able to pull through in some years. They were able to recover from the crisis to an extent back in March 2021, therefore I do believe that it won't be a hurdle. The good thing about developing countries are that they have immense growth potential.  

I'm just concerned about the overall economy. I have no desire to save my money with fiat. Trust me or not, at the moment I'm almost 60-70% with crypto. Rest of the 30% are in fiat and other commodities. So, I'm not much worries about my position. If it takes affect, inflation will be high and I will see people around me will have hard time to survive. That's something I'm worried about.

I'm just basing on what you said because I don't know how the financial system works in Bangladesh and how it's being implemented at this moment with all the pandemic stuff still happening.

So back to the stuff: I believe it's not going to collapse due to the pandemic because there are possibly reserves that banks can go into if they ever run out or experience a crisis like what we have now. It's not going to be an instant, to be honest. They will do everything they can to stay afloat and possibly get all those defaulted loans and get the value of the collateral they have given.

I hope they find a way without damaging their economy by printing more paper money out of thin air.

Lately, when the lockdown has become a terrible rule for all banking circles, they finally admit that in terms of financial distribution it has fallen quite sharply. So the impact does not rule out the possibility that the continuation of the lockdown will become a hotbed for withdrawing money in the long term to deal with the lockdown conditions.

seen from the declining liquidity, but the credit level has not contracted properly. clear enough to be used as a reference in the midst of economic pressure due to this pandemic that has affected the level of credit demand for the people of India, especially in Bangladesh.

but if everyone cashed in, of course the bank would be faster to close the total cash out request.

I don't think the banking system is at a critical point right now in Bangladesh, from what you've described. They're just probably taking precautions in order to prevent collapse in the future. It's a pretty common practice in developing countries during the crisis, the banks limit the possible amount for cashout per time (or per day), reduce the number of working ATMs, and so on, because when people panic they cash out a lot in order to have their money secured, exchange for other currency, etc., no bank needs that.
Better from you withdraw whenever you can if you need cash because this situation can get worse in time.

Only OP (Little Mouse) can answer this but he seems not interested to let you know.  :D
However, you can see these two posts:
1. https://bitcointalk.org/index.php?topic=5063122.msg47661401#msg47661401
2. https://bitcointalk.org/index.php?topic=5034274.msg46893242#msg46893242

He is probably from India. But who knows if he is from Bangladesh or Pakistan.

I don't know what's happening in your country, but lockdown shouldn't last a long time. Although Pandemic in India seems very severe today, it should have an end someday (shouldn't last for months). I am sure the government will do the best to deal with the pandemic. When the virus spread can be lowered at a certain level, the lockdown is probably considered to be over.

Regarding the bank, it is supported by the government and even a vital institution in the country, so shouldn't be collapse. As long as people use the bank, there is no doubt that the bank will always survive. About why deposit is decreasing, while withdrawal is increasing today? It is because most people have urgent needs nowadays. The current situation makes them to use more money, so they must withdrawal their savings. In the other hand, people got difficulty to get income (earn money), so the decreasing.

Definitely possible. And these seem to be early signs of an insolvent fractional reserve system.

We have seen this sort of thing happen over and over again. The most recent example would probably be Venezuela, where ATMs are virtually depleted of cash or always in perpetual maintenance, meaning that no one can get out their cash from their banks whilst prices have been skyrocketing.

I certainly would take whatever hedges are available to you. Buying some digital assets, precious metals, or heck even foreign exchange (only if that's the only thing available to you, since themselves are liable to falter) would be a good idea.

Most countries are having a tough time with Covid because the government are forcing businesses to shut down, so that explains why people are defaulting on their loans. Don't think Covid's gonna trigger large financial institutions to crash because we're past the worst, so you'll eventually see economies recover. Though with the delta variant, I could easily see countries going overboard and doing lockdown v2, and that will certainly cause smaller countries to collapse financially.

Resilient economies can handle one phase of Covid, won't handle two.

I mean what can you do about it? Business attracts people and the virus loves it when people gather so what choice do you have but to prevent it via closing the shops for a temporary time. The problem is that the government lacks action and follow up to their plan to stop the pandemic that's why the economy is shut down much longer.

Bank wont be close, gov wont do that

Title:

Even ignoring the fact the author said "here" so I assume he is from Bangladesh, the topic is not about him or his location, he could be a polish guy working in Nigeria with Brazilian citizenship, doens't change a thing.


Guess not:
https://www.thedailystar.net/business/economy/banks/news/banks-log-higher-expected-profits-despite-slowdown-2122429
If you're afraid of the money in your banking account just withdraw it and exchange them for a more secure currency, euros or us dollars.


Yeah, just in a few seconds!!! I've heard this for a more decade and guess what, there has been no collapse and at how things look right now there won't be any even in the following years there is simply nothing that could trigger it. And if you think inflation, that alone can't do it anyway! Meanwhile, in the real world:
https://www.cnbc.com/2021/05/28/us-banks-are-poised-for-record-level-earnings-in-2021-says-iif.html

Really from what i have experienced or observed from the previous lockdown, Corona virus lockdown don't really affect banking system, bankers always be in function because their attention is needed generally at any moment of Time, even on the lockdown you are permitted to go to the bank in order to make some of your transactions, but the existing problem behind it, is that anyone going to the bank will observe the rules and regulations of covid19 before it will be allowed to penetrate into bank or out from he or her home, by using nose mask, so in summary, no matter the level of the lockdown government most allow banker's to operate.

Nope this will never collapsed since even if there are many members withdraw their money in their accounts still many will file a loan just to have money on this crisis, many people are in need of money right now thats why some of the banks offer low % interest just to make people apply a loan from them. Also loan default might happen but I think banks have other ways to retrieve their money came from the one who borrow from them.

I think their government should look for another means to handle this case, maybe the lockdown isn’t a better option right now, they should consider other means that are going to help keep their economy stable, and prevent it from collapsing. But, I think if this continues like this, the government in that your country may start placing limits on the amount of withdrawals that people can make in a day.

I have seen countries that did this kind of thing, and people then had to rely mostly on online transactions. Whatever plans they have, I hope they do the right thing.

if this continues there will be a bigger crisis and shifting economic inequality that is unstable but each country has several further options which may be the bank's lockdown is only temporary ... by reviewing the impact of these policies

but, still it will not be a solution to a crisis that will be much worse. where when every bank closes the disbursement of money there is a kind of reduced economic growth barrier and an absence of an increased exchange activity. it looks like a symbiotic parasitism where people who have mediocre money and must be forced to survive in uncertain conditions? it will only lead to criminal activity which encourages them to fulfill their needs in a cruel way.

the government must think more wisely, because the government and the rich may have a large stock of money to last for a long time, then where will the lower classes get their income from? their main job is closed and can not operate again.

Lockdowns really made the people go panic buying, withdrawing, and loaning. It is really hard to be in a city wheareas the time to go outside and do what you have to do is very limited. Hence, most people just opt to buy in bulk and withdraw at once. The majority who has the means of withdrawing their hard-earned money are doing it because it's really hard to go outside every time. It is also difficult to risk your health everytime you'll run some errands.

Regarding bank issues, I think the greater percentage of money borrowed by the citizens than the deposited money in a bank will cause a problem. If the banks will not impose a collateral for every loans made by its users, they will surely have a large problem later on. Imbalance of funds may occur if continuous loans and withdrawal will be made. Soon after, they won't be able to sustain the demands because they will be short of funds. Bank collapse can possibly happen if the transactions were not regularized properly. There's also a big chance that the government's debt will surge due to volume of aid needed to be distributed. I just really hope that Bangladesh's governement will not look on excessive printing of money because it can cause a lot more problem such as inflation, which can damage their economy even more.

Collapsing with is not a new thing to the world. But its a time taking process. But if we talk about Bangladesh its not will be easy or though its a government work in every country its takes time. And for Bangladesh i think it will take much more time like firstly they creat a team to research about it then they send a proposal to finance Department then they will research about it then they talk about it in Sangsad after that if Sangsad approved it then will talk with Bangladesh bank then if they approved then need it chcek. And for all this i think it might take a huge time. Its my opinion thank you

It is certain that if the closure continues, the banking system will collapse there, they will lose people's confidence and therefore there will be no withdrawal and deposit, which can cause the collapse, or the bank will be forced as usual to print more paper money to cover the budget deficit and this will of course lead to more inflation And the Bangladeshi paper money loses more of its value. Unfortunately, I hear a lot about government corruption in Bangladesh and the bad economic conditions and the collapse of the banking system will lead to a further deterioration of the country's economic situation.
Unfortunately, the world's governments do not yet realize that this banking system that has been in existence for years is on its way to collapse. Satoshi announced the end of the corrupt banking system when he announced the birth of Bitcoin and hammered the last nail in the coffin of the corrupt central banking system, but until now they cannot understand this fact.

In fact, money from customers is one of the largest sources of bank income and is used to rotate its services. When the bank's cash reserves are no longer sufficient to serve customers who withdraw their funds, the bank must sell its assets. If it still doesn't cover the existing needs, then the bank will also fail to pay.

If this happens, the government will be forced to share the consequences of the rush of money that occurs by channeling aid funds from bonds. Worse, the impact of this money rush can cause an economic recession that will make it difficult for the wider community.

I hope the citizens of Bangladesh don't withdraw all their money that can cause inflation. I think it is okay if the money is used for produce their domestic product. If they only use the money for consumption only then I think it is a bad idea. I think there is no problem with banking system but in my opinion the dangerous thing is the inflation effect to the economy of their country.

Don't worry, Bangladesh Central bank will print money and will liquidate it into the economy via banks in different forms so the banks are not going to collapse but the inflation rate will be out of control so the actual purchasing power will be lost so don't keep anything in the fiat form, just convert into some assets like Gold which can be converted back into fiat later.

Not everyone can withdraw from banks within a day because that's how it will collapse, banks don't have money in them that's enough to accommodate everyone that will withdraw money in their branches, they are working base on fractional reserve banking. Plus they won't collapse that easy because they can just close the banks for the day if the number of withdrawal is going to be that big.

I have many times talked about how a large part of the population are "unbanked", that is, for reasons of poverty, ability or lack of access to any commercial banking facility, even in terms of distrust they cannot or will not open a bank account, thus not having any access to electronic payments in fiat, credit or payments that most people here would consider as usual business. If you think of it, it seems ironic that this status in society will also assure them that they will not lose anything if a bank collapses. Is not really much of a consolation because the fallout will be strong anyway.

https://thefinancialexpress.com.bd/trade/half-of-bangladesh-adults-remain-unbanked-wb-1524886500 (https://thefinancialexpress.com.bd/trade/half-of-bangladesh-adults-remain-unbanked-wb-1524886500)

It is true that the banks are not in good condition defaulted loans have created big problems there doesn’t seem to be any arrangement going on. It’s been going on year after year significant plans should be made now to reduce bad debts we are all responsible for this situation after the independence of bangladesh there was no entrepreneur to establish a bank in the country. Those who took advantage they were never entrepreneurs they came to loot looted and gone if the government can take the right steps now the banking system in bangladesh will not collapse.

Government banks generally don't collapse because government is always there to bail them out. They will just increase the fiscal deficit and thereby pumping additional money into the bank. So even if you withdraw everything in cash chances are that you will still feel a lot of heat if any such thing happens. In India too a lot of banks are facing this issue. Infact government did bailed out couple of banks in last one year even one private bank. Moreover Bangladesh's economy has been quite strong from a few years so I think they will be able to handle it nicely.

The banking system is constantly operating, with and without covid, there will still be deposits and withdraws, from business that offer services to online shopping and many different systems, so it may be true that things will slow down heavily, but i don't think to the point where the whole banking system would collapse, and if that happens the government wouldn't just sit and watch, there are a lot of solution to the problem if it comes to that point.