Report: More Than 50% of the Worlds Banks May Be Too Weak To Survive A Recession

[Hydrogen]

Bumping this.

As it could be relevent now.

[nosferzd]

That is why if you want to keep your money in banks, you need to choose from the list of the top 10 largest banks, or invest the amount that insurance agencies can return to you in case of bank bankruptcy. You can also distribute your funds to different banks and be sure that everything will be reimbursed to you also with interest.

[senin]

A recession occurs because of mismanagement, boom and bust cycle, geopolitical instability, etc., not because of Bitcoin.

I echo these thoughts. Even though bitcoin per se is considered as disruptive in today's standards, I still don't buy that bitcoin and other crypto are the reasons why there will be a recession. For the most part, banks and governments cause these recessions themselves until it creates a chain reaction on different parts of the industry because by then, everyone and their mothers would be in a hurry to get their assets out of a bank, causing it to implode from the inside and boom, money is gone.

Recession is an integral part of the economic cycle. It is not there simply because a failure is done somewhere along the way. It is there because it is part and parcel of the economic cycle. The economic activities of a certain country or even region constantly expand and contract. That is the norm in the market. The spending rises and falls. And when the spending falls way below the normal level, it is when recession takes place. It is as old as humanity. It does not have anything to do with Bitcoin. 

However, now we have the opportunity to observe for the first time how Bitcoin and other decentralized cryptocurrencies will behave when the global economic crisis sets in. It is assumed that Bitcoin appeared after the previous economic crisis of 2008 as an alternative to existing traditional payment systems, namely, as an inflation-free currency. It seems to me that we cannot avoid a very tough economic crisis, and therefore we will have such an opportunity.

[mu_enrico]

However, now we have the opportunity to observe for the first time how Bitcoin and other decentralized cryptocurrencies will behave when the global economic crisis sets in. It is assumed that Bitcoin appeared after the previous economic crisis of 2008 as an alternative to existing traditional payment systems, namely, as an inflation-free currency. It seems to me that we cannot avoid a very tough economic crisis, and therefore we will have such an opportunity.

Yes, this is an opportunity for Bitcoin to prove to the masses that it can survive the crisis. However, I don't think that the price will increase, more likely follows any other investment instruments, like gold, stocks, etc.

The government will bail out banks if they face bankruptcy, but what will happen to Bitcoin? What will happen to the miners? Maybe we can answer these questions this year.

[Meowth05]

People shouldn't panic when that happen, deposits of each individual are insured no matter what happens when they are in the bank. I don't see a problem when it happen to big banks but if you are with them and you are on the small banks then just make sure that the bank you are inare covering your savings with insurance.

[fiulpro]

I don't even think it would be 50% , it is way way more than that for sure , it is dependent on the place where they are situated. If they are more localised around a developing country and are local banks , not national then they have the worse case scenario , I have seen people loosing money , with the banks being torn down and trust me it wasn't even a recession . It was just any normal turn of events which the less flexible banks couldn't afford to take care of.
Banks are weak , the government is weak , we have to be independent for a while , till the time they find out how to use authority and intelligence together.

[figmentofmyass]

Bumping this.

As it could be relevent now.

this is the first USA bank failure since the coronavirus hit: https://www.marketwatch.com/story/fdic-announces-first-bank-failure-of-coronavirus-crisis-2020-04-03

are the first dominos beginning to fall? we should expect an uptick in bank failures as the crisis pushes banks who were already financially stressed over the edge. this may not indicate larger systemic issues though.

FDIC data shows that banks overall were well capitalized heading into the pandemic. months of lockdowns could change that outlook though as people start defaulting on loans. https://www.americanbanker.com/news/will-coronavirus-lead-to-a-wave-of-bank-failures

[abhiseshakana]

Given the fact that large companies such as Apple, Amazon, Ping An have begun to provide financial services, and their credit cards are especially in demand, then in this case, bad times really come for banks. According to competent analysts, in order for the banking system to remain operational and many banks to survive after the next economic crisis, banks will have to introduce new technologies, as well as use outsourcing and large-scale mergers with other banks and structures.  Otherwise, such banks simply run the risk of disappearing.

Nowadays banking is considered the key to economic success so that banks are imaged as important for developing the economy even though what is key to the economy is banking, not banks. But because there is already a doctrine, so entrepreneurs and academics see the bank as the most important and must be protected. Whereas the bank was designed only for the rich because those who can borrow at the bank are those who have collateral (asset-based loan), even though the bank collects funds from most people but the allocation is only for a group of people.

Banks are a sunset business because now banking can be done by non-bank institutions such as Paypal and many financial services that were initially provided by banks are now provided by many digital platforms.

[Wind_FURY]

That is why if you want to keep your money in banks, you need to choose from the list of the top 10 largest banks, or invest the amount that insurance agencies can return to you in case of bank bankruptcy. You can also distribute your funds to different banks and be sure that everything will be reimbursed to you also with interest.

"Not your bills, not your cash".

You should save/invest/HODL some of your net-worth in Bitcoin, then convert your money back to fiat if that's what you truly want.

[Rafael_Carrero]

Some Banks' bankruptcy is inevitable event. People can't trust banks as they do before 2008 crisis. Don't forget that the situation has changed since 2009 a lot. Now cryptocurrency gives us financial freedom. We appreciate the concept of being our own bank, so banks are becoming weaker.

[Hydrogen]

Bumping this.

As it could be relevent now.

Bumping this again, as it could be somewhat relevant given the recent collapse of SVB.