Banks would suffer till at least 2025, according to IMF

[Finestream]

It all boils down to the unemployment rate and closing of businesses, major income of banks are coming from interest on loan, so when the economy are not good, they can't easily lean to people as the number of potential borrowers will decrease.

The government has a very big role, on recovering the economy, but we can't deny as well that taxes could probably increase as the government would want to recover first before us. Anyway, let's just watch it out, and we will remain hopeful that 5 years is just too long for the economy to recover.

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[Findingnemo]

Don't worry they will make huge profits later once everything get back into normal, so its like a long term investment for the banking sector.

Its the time for decentralized cryptos to get evolved so try to accumulate more bitcoins as much as you possible then you will have assets with real value.

[PavelMed]

Don't worry they will make huge profits later once everything get back into normal, so its like a long term investment for the banking sector.

Its the time for decentralized cryptos to get evolved so try to accumulate more bitcoins as much as you possible then you will have assets with real value.

I support your opinion. It is difficult to guess how Bitcoin will behave, but I want to believe that against the background of market collapses, cryptocurrency will feel good. Even hard times can be a new opportunity.

[Finestream]

Don't worry they will make huge profits later once everything get back into normal, so its like a long term investment for the banking sector.

Its the time for decentralized cryptos to get evolved so try to accumulate more bitcoins as much as you possible then you will have assets with real value.

Banks will recover but they'll not gonna provide people with the affordable services, for sure their interest rates on loans will increase and maybe their deposit charges will change, it could be possible that they will reduce the interest given to depositors, and worst if they'll charge depositors, this happens in some countries, so I'm afraid it will happen to us.

I support your opinion. It is difficult to guess how Bitcoin will behave, but I want to believe that against the background of market collapses, cryptocurrency will feel good. Even hard times can be a new opportunity.

That's normally what would happen, bitcoin is decentralized, so a failure or a struggle of a centralized system will make the decentralized asset more valuable, and maybe the market now is the representation of that idea as bitcoin is still bullish despite the economic struggle.

[Findingnemo]

Don't worry they will make huge profits later once everything get back into normal, so its like a long term investment for the banking sector.

Its the time for decentralized cryptos to get evolved so try to accumulate more bitcoins as much as you possible then you will have assets with real value.

Banks will recover but they'll not gonna provide people with the affordable services, for sure their interest rates on loans will increase and maybe their deposit charges will change, it could be possible that they will reduce the interest given to depositors, and worst if they'll charge depositors, this happens in some countries, so I'm afraid it will happen to us.

If banks started asking fees from the depositors then they are not going to get more depositors and in long run people will move to online wallets been if they are less secured and banks also aware of it.So they will keep everything in an unnoticeable range so people may not get aware of it.

[MCobian]

I agree with the IMF's opinion that banks will suffer for at least another 5 years. And it will be even longer if in 5 years it doesn't
COVID-19 vaccine was found. But I believe that the American economy will be able to survive with this COVID-19 pandemic.
Even banks around the world are experiencing the same crisis, COVID-19 has caused crises in various sectors of human life.

[South Park]

It all boils down to the unemployment rate and closing of businesses, major income of banks are coming from interest on loan, so when the economy are not good, they can't easily lean to people as the number of potential borrowers will decrease.

The government has a very big role, on recovering the economy, but we can't deny as well that taxes could probably increase as the government would want to recover first before us. Anyway, let's just watch it out, and we will remain hopeful that 5 years is just too long for the economy to recover.

It seems to me that raising taxes now will be a terrible idea, many businesses are on the brink of bankruptcy, they need all the help the government can give to them if instead they get slapped with more and bigger taxes then many businesses will be forced to close their doors, in my opinion governments will have to learn to do more with less since we cannot afford to have such massive and inefficient governments anymore, if anything there should be a reduction on the amount of taxes charged to businesses and people in general to help alleviate the crisis.

[Upgrade00]

In the just released headline of the financial times they report that banks in the UK fear that up to half of the receivers of the Bounce Back Loan Scheme would default, the total of which was £18.5billion

They are also predicting the collapse of hundreds of thousands of small businesses. It appears that some of the loans were not made in adherence to due protocol and would have not been given out otherwise. The size of those businesses makes it difficult for the government to take equity and if they are written off it would affect the lenders involved, which are the banks. And the collapse of so many SMEs would impact the market.

[Febo]

Banks would suffer till at least 2025, according to IMF

Banks will suffer forever. Unless Ripple Labs dont buy them out. Quite possible future. Like they bought Moneygram. 

[fiulpro]

That actually makes sense now so as:

Why JP. Morgan is suddenly interested in Bitcoins.
Why is China allowing users to categorize it as an asset.
Why Indian government have stopped posting ill-advised statements about the same .
Why in Ukraine you can buy And sell Bitcoins super easily.

Etc...
_________________________________________________________

I do think the government have realized their mistakes and so did most of the people.

A centralized body is bound to fail if they do not improve the network indefinitely.

Governmental strategies are not always the solution , people do need some freedom , some privacy . You know only 10% BTC is being used inappropriately , whereas the chances of Fiat being used is way over this .
_________________________________________________________

Banks are weak .

Their security does depend on the government which is printing money out of thin air , Making the economy weak . We are bound to go bankrupt if this continues.

If one would calculate the debt these central bodies carry , they will have a good idea of the current situation.

5 years is a big deal , people are not able to get though 5 months of quarantine here . One needs to somehow managed the situation ASAP !


_______°_°_________

[Freeesta]

Banks with a low capital stock and a high share of loans. If loans were previously issued for the weakest sectors - transport, tourism, restaurant and hotel business. Such banks will suffer and may close after a pandemic.

[abhiseshakana]

I do think the government have realized their mistakes and so did most of the people.

A centralized body is bound to fail if they do not improve the network indefinitely.

Governmental strategies are not always the solution , people do need some freedom , some privacy . You know only 10% BTC is being used inappropriately , whereas the chances of Fiat being used is way over this .

I think it will be very difficult to leave the SWIFT system because the world already depends on this system. And the fact is faster than transactions using bitcoin.

The advantages of SWIFT are speed, low cost, and reliable data protection. Payments are also eliminated through this network when each party is under the same jurisdiction. SWIFT has helped the money supply in the global economy. Through this SWIFT network, globalization of the dollar to all countries of the world has been successful, SWIFT is denominated in dollars, which means facilitating the international dollar transaction system. Although SWIFT itself is neutral, it is not affiliated with politics but it also cannot be separated from US pressure.

Banks are weak .

Their security does depend on the government which is printing money out of thin air , Making the economy weak . We are bound to go bankrupt if this continues.

If one would calculate the debt these central bodies carry , they will have a good idea of the current situation.

5 years is a big deal , people are not able to get though 5 months of quarantine here . One needs to somehow managed the situation ASAP !

Banks are indeed weak because the existence of fractional reserve banking creates wealth value based on speculation. If people all over the world withdraw cash from banks simultaneously, many banks will collapse because money has been printed hundreds of times the amount of available guarantee.

The effects of bitcoin traded for use in everyday life are very different. One only creates a pseudo surge, one can be the foundation of economic stability.

[South Park]

In the just released headline of the financial times they report that banks in the UK fear that up to half of the receivers of the Bounce Back Loan Scheme would default, the total of which was £18.5billion

They are also predicting the collapse of hundreds of thousands of small businesses. It appears that some of the loans were not made in adherence to due protocol and would have not been given out otherwise. The size of those businesses makes it difficult for the government to take equity and if they are written off it would affect the lenders involved, which are the banks. And the collapse of so many SMEs would impact the market.

This is nothing more but a domino effect, it is going to be very interesting how governments are going to try to stop this because the last time there was a crisis with the banks they just rescue them by printing money as if there was no tomorrow and by getting indebted, if they try that solution once more it is possible they are going to put themselves at risk and the economy by creating a a scenario of hyperinflation, however the alternative of letting the banks fail even if fair will probably have very significant consequences for the economy as well, so there is no really an optimal solution for the economic crisis that we will face in the future.

[wozzek23]

Honestly the real consequence of current pandemic could start from 2021 onward hence there would be no surprises if slow economic conditions will persist till 2025. I guess almost all the sectors will get suffered and not just banks. But, when traditional banks find hard time due to low production and more job losses, I guess institutional investors will not have more options to go with. So, there are more chances for bitcoins to stop them.

IT could be one of prominent sector to see more job losses due to recession. When more number of software development related people get into bitcoin for various reasons, we may see peaks on everywhere including mining difficulty and new businesses on crypto services. I am not seeing anything con for crypto space due to pandemic but how accurate will be the actual things from foreseen is the big question right now .