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| Thread ID: 93919 | 2008-10-06 19:22:00 | NZ Banks - Are Term Deposits Safe? | learning (5137) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 710144 | 2008-10-07 03:47:00 | What can kill a bank is a run on the bank. It works like this Westpac example only Lets say a mate/relly or something says if you are a "Westpac customer get your money out rfn, the bank is going tits up". Within a few minutes idiots are lining up and nothing the bank says will stop the run. After the idiots have gone the nervy ones start taking out their dust. The bank reaches a tipping point. If the bankcloses it doors ther run gets worse |
prefect (6291) | ||
| 710145 | 2008-10-07 06:27:00 | I know in USA FDIC gurantess Term deposists up to $100 000 $250,000 per person now, after the Stabilization Bill was passed last week. |
beeswax34 (63) | ||
| 710146 | 2008-10-07 06:37:00 | I think if ANZ National Group (owner of ANZ bank and National Bank) collapses, then we have much bigger problems with our economy than anyone thought... In any case, I think since National Bank has quite a large, rural customer base (i.e. farmers with plenty of savings), they should be fairly financially stable in comparison to banks which are more dependant on overseas funds. | somebody (208) | ||
| 710147 | 2008-10-07 07:20:00 | How does Westpac fit into the world market? I've always had most of my money with SBS, which should be a safe bet since it isn't owned by overseas interests. |
Greven (91) | ||
| 710148 | 2008-10-07 07:54:00 | Although NZ Govt would step in to prevent a failure of such a major bank should NBNZ were to sink, beaware your funds are not insured. I know we bailed out the BNZ before but there is no guarantee that the NZ govt would bail out any bank. Aussie are offering a guarantee up to a certain amount. |
mikebartnz (21) | ||
| 710149 | 2008-10-07 19:41:00 | What can kill a bank is a run on the bank. It works like this Westpac example only Lets say a mate/relly or something says if you are a "Westpac customer get your money out rfn, the bank is going tits up". Within a few minutes idiots are lining up and nothing the bank says will stop the run. That is exactly what happened to some of the finance companies, although they should have taken steps to ensure it couldn't have happened. |
wotz (335) | ||
| 710150 | 2008-10-07 20:12:00 | What can kill a bank is a run on the bank. It works like this Westpac example only Lets say a mate/relly or something says if you are a "Westpac customer get your money out rfn, the bank is going tits up". Within a few minutes idiots are lining up and nothing the bank says will stop the run. After the idiots have gone the nervy ones start taking out their dust. The bank reaches a tipping point. If the bankcloses it doors ther run gets worse Although if a bank has been sensible, it will have kept high asset to liability ratios, so that even if a large number of people withdrew their money, they would still be ok. Its only the highly leveraged ones that need to worry. |
utopian201 (6245) | ||
| 710151 | 2008-10-08 01:28:00 | That is exactly what happened to some of the finance companies, although they should have taken steps to ensure it couldn't have happened . Thats why we need government backed insurance on each and every NZ bank account . It is not as though it is actually going to cost the government anything anyway . It is simply there to stop a run on banks, and piece of mind . They have it in the US, and almost all other countires in the world . It is kind of ironic that they have it in the US, even though the US is the main reason for these financial problems in the first place . At least they will be protected . I note in Oz, they are introducing insurance, but only for a pultry $20k or so . If you had 500k in the bank, you would have to spread it across many different banks, in order to be protected . |
robbyp (2751) | ||
| 710152 | 2008-10-08 03:57:00 | No, no, no, this is the Free Market, don't have any rules or regulations just let it run wild it will all turn out well in the end, ha ha ha, You can't say that you weren't warned. |
zqwerty (97) | ||
| 710153 | 2008-10-08 04:03:00 | No, no, no, this is the Free Market, don't have any rules or regulations just let it run wild it will all turn out well in the end, ha ha ha, You can't say that you weren't warned. So true Zqwert,lets all move to Russia,or china. |
Cicero (40) | ||
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