Will banking system in Bangladesh collapse?

[Little Mouse]

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?

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[jackg]

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).

[Kittygalore]

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.

[Gozie51]

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.

[fiulpro]

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?

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.  

[Little Mouse]

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).

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.

[crwth]

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.

[Furious 7]

What do you think? Is it possible that if lockdown continues, banking system will collapse here?

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.

[just_Alice]

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.

[Rengga Jati]

You have kept saying here without mentioning your country or location.

Only OP (Little Mouse) can answer this but he seems not interested to let you know.  
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.

Is it possible that if lockdown continues, banking system will collapse here?

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.

[magneto]

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?

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.

[Gyfts]

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.

[Obito]

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.

[juemonju]

Bank wont be close, gov wont do that

[stompix]

You have kept saying here without mentioning your country or location.

Title:

Will banking system in Bangladesh collapse?

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.

What do you think? Is it possible that if lockdown continues, banking system will collapse here?

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.

The banking system of the whole world is about to collapse, it's not something new

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

[GeorgeJohn]

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?

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.

[Taskford]

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?

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.

[doomloop]

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.

[dark1234]

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

[Sterbens]

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.