HSBC 7% - Creditwest/Iktisatbank 10.5%

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
25/10/2009 13:36

Which bank is likely to get into trouble first?



One could argue that the one with the higher interest rates is attracting new customers and has more money to lend/invest, therefore, enabling them to make a profit, or potentially make a loss.



Alternatively, one could also argue that the bank with the lower interest rate may still be keeping some customers and therefore also has funds available to lend/invest.



If the bank with the lowest rate, loses the majority of it's customers it will have nothing to lend/invest. It may not lose money to clients unable to repay loans, but, could this be the first one to get into trouble.



All rates correct as at Friday 23rd October for the TRNC market.

lapta29


Joined: 09/10/2009
Posts: 88

Message Posted:
25/10/2009 13:40

I had continental doing 12.5 % on Friday 23 rd October 2009

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
25/10/2009 13:42

More likely, the higher paying banks will fall in line soon, and drop the rates.

lapta29


Joined: 09/10/2009
Posts: 88

Message Posted:
25/10/2009 13:54

continental is up 1/2 % this month from 12 last month !!

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
25/10/2009 14:36

I heard Universal are doing 13%.



I'll steer clear of the highest ones.



Anyone with KOOP, or Limassol?

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
25/10/2009 14:44

Rule of thumb:

Those banks that pay higher interest rates on savings will be lending to businesses at higher interest rates and as usual the loans will be made to suspect applicants who may default on their repayments. Make your choice and suffer the consequences.

AJ

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
25/10/2009 14:51

AJ



I appreciate your previous comment may be a little simplistic.



But do you really think any bank, in todays climate would actually lend to "suspect applicants"?



Even if they did, they would expect the majority of these businessmen to pay, therefore covering the losses by the few.



If you borrow at 7% and lend out at 20%, there should be enough profit. If you borrow at 10.5% and lend out at 15%, you will make less profit, but if you're doing this 1,000 times more often than the first bank, I know which one will be in trouble first. Hypothetic, but only to make a simple point.



We need to know which banks lend at what rates?



Perhaps, you are correct, they will lend to suspect applicants, whose only security is the land/property that they have already sold!

stellasstar1



Joined: 02/07/2008
Posts: 1519

Message Posted:
25/10/2009 18:38

The banks with the lowest interest rates are losing most of their customers. If you go into HSBC or TurkBank you will find that the queues have almost vanished. So therefore the ones paying just a little more are getting the customers and all the money.

newscoop


Joined: 23/12/2007
Posts: 2197

Message Posted:
25/10/2009 21:45

AJ; I really thought you had stopped your generalising re banks.



You were doing it big time a couple of years ago predicting the end of the world, the banks you warned about then are still going.



Forget what happened in 1999/2000 most of those banks were mainland. Everest was the main local casualty and look what happened to the owner and his family.



Anyone understandably concerned should use a combination of government banks (koop and vakif) and private.



Also stay within the guaranteed limits per account.

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
25/10/2009 22:12

newscoop, Well done for speaking sense. Those that where spouting in favour of banks paying lower interest rates as being more secure are really not aware of whats going on in the financial world. If you want lower interest rates then go for it if you have to, others will look at the facts and do a lot better.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
26/10/2009 08:56

the scary thing about the "safety" issue is that no one really knows who is safe and who is not.......



My Uncle Percy used to keep his money under his mattress......

bazilbrush


Joined: 29/03/2008
Posts: 404

Message Posted:
26/10/2009 15:24

Turk bank 6.75% today but is going to drop to 6.25% later today. This must be the lowest interest paid by any bank here now..........!!!! Soon it will be at uk rates and then time to take out, so can sleep a little better knowing it is back in a uk bank.... If that is safe of course.....!!!!!!!!

MarkVPiazza


Joined: 14/08/2008
Posts: 530

Message Posted:
26/10/2009 15:37

Who are the main borrowers from TRNC banks, and are they likely to be able to repay their debts, would be my first questions.



Mark

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
26/10/2009 22:50

mess 13 - Mark, its a fair point.....

MarkVPiazza


Joined: 14/08/2008
Posts: 530

Message Posted:
27/10/2009 10:10

Remember, pyramid schemes only have a finite number of likely punters, and as these run short, higher returns will be offered to tempt in new money.



Mark

girne


Joined: 14/01/2009
Posts: 438

Message Posted:
27/10/2009 10:11

I work at the continental bank in K/oğlu. Our rates are very competative.

Why not come in and have and have a chat.



Kibris Continental Bank

Karaoğlanoğlu



1 Month/Ay 12.50% 200,000 + 13.00%

3 Months/Ay 12.50% 200,000 + 13.00%

6 Months/Ay 12.75% 200.000 + 13.50%

1 Year/Yıl 13.50% 200,000 + 13.75%







STG

EURO DOLLAR

1 Month/Ay 5.00 5.00 4.50

3 Monthly/Ay 5.50 5.50 5.00

6 Monthly/Ay 6.00 6.00 5.50

1 Year/Yıl 6.50 6.50 6.00

Effective as of 12/10/09

Contact details t.abdullah@kibriscontinentalbank.net

Tele: +90 (392) 822 4359

stellasstar1



Joined: 02/07/2008
Posts: 1519

Message Posted:
27/10/2009 17:58

Message 16, yuo are quoting rate for very large amounts of money. What are the rates for 50,000 to 100,000.

As the banks guarantee for less, people tend to spread their money about.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
27/10/2009 18:47

Continental Bank are paying 12.5% for all amounts up to 200,000 TL. Over 200,000 TL = 13%.

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
27/10/2009 19:12

newscoop

With reference to message 9:

Do your research and see who were the best performing banks over the last year (and previous years) and then find out how long these 'best performing' banks have been around for. I guess in essence you need to look at their pedigree rather than their interest rates. Turk Bankasi and Turkiye Garanti Bankasi are both mainland Turkish banks and are fiscally prudent. Now tell me whether the likes of Creditwest and the Universal Bank have got anywhere near the fiscal stability that the above mentioned banks have.

AJ

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
27/10/2009 19:30

AJ

Turk Bankasi is actually not a mainland bank but a private TRNC bank with branches in the UK. & Turkey.

From TRNC Central Bank website.

The remarks you are making are just your personalviews & not based on fact.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
27/10/2009 19:31

re msg 20.

Sorry forgot to post the link.

http://www.kktcmb.trnc.net/ENGLISH/banks/banks-eng.html

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
27/10/2009 19:46

message 29 ...... well that is a surprise !!

MarkVPiazza


Joined: 14/08/2008
Posts: 530

Message Posted:
28/10/2009 10:50

If a bank has a non-performing loan, after 1 year this should be recorded as a "bad debt" and written off on the banks accounts after two years.



Many TRNC banks have bad loans to property developers, the debt on which they add large interest payments each year. These debts are now astronomical , due to very high TL interest rates.



There is virtually no hope these loans will paid back.



The question you should ask your bank, is how do they rate bad loans, and when do they write the debt off?



If they are not following the 1 year bad/2 year write off protocol, they could be in a very poor underlying financial shape, and they will be operating on a Ponzi/pyramid basis, that can only end one way.



Mark

jimmyG


Joined: 14/08/2008
Posts: 900

Message Posted:
28/10/2009 11:09

Firestarter re : Msg22 - any chance you could send me tonight's lottery numbers?

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
28/10/2009 11:22

jimmyG

I am now waiting for message 29 to appear just so that I can understand what is going on.

AJ