What about out money here is it safe

johnty


Joined: 03/06/2008
Posts: 257

Message Posted:
06/10/2008 12:52

With all europeon banks having problems is it coming our way. Is our money safe in the banks here. What do you think should we withdraw it?

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
06/10/2008 13:00

Depends on a number of factors.



What Bank is it in

How much is in the account

Are there any penalty charges for taking the money out

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
06/10/2008 13:02

Depends on a number of factors.







What Bank is it in



How much is in the account



Are there any penalty charges for taking the money out

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
06/10/2008 14:00

Hi all....According to Bloomberg tv..people are rushing to deposit there money into HSBC and there share price is rising steadily so it would seem they are a safe place to go....

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
06/10/2008 18:32

i don't think any bank is 100% safe right now. withdraw it and buy a safe.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
06/10/2008 18:50

Message 5 is a really daft option

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
08/10/2008 13:26

you wont be saying that when the bank robs you! lol!



even in the uk this 50k compensation scheme is a scam.

if you have savings and a mortgage with the same bank, then they will take your savings to pay off your mortgage before any compensation is paid out.( in the event of them going broke.)

come_on_aylin


Joined: 14/06/2008
Posts: 908

Message Posted:
08/10/2008 13:42

Have a look at this link http://www.moneysavingexpert.com/savings/safe-savings for UK and some foreign banks

Laptalocal


Joined: 28/02/2008
Posts: 99

Message Posted:
08/10/2008 14:19

I think it depends on the bank (you need to check if you are covered and up to how much) and most importantly, I would say spread it around! Don't put all your eggs in one basket as they say!

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
08/10/2008 16:09

fire starter



The compensation scheme is not a scam, people know exactly what the situation is (if they don't then more fool them) so if they invest their money with the same company their mortgage is with then they are asking for trouble.

Also people have been advised time and time again not to put all their eggs in one basket yet they still do, why do they????????????

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
08/10/2008 16:18

Some people don't understand banking and depositing money, so they are happy to put 'all their eggs in one basket'.

I would guess that it's the 'mature' age group that invest the most. Most of this age group are happy to deposit their funds with one institution and not 'spread it around', thereby lessening the potential risk. I hope I haven't come across as being derogatory to the older generation. (DOH! I am one)

Mr Vince


Joined: 24/07/2008
Posts: 696

Message Posted:
08/10/2008 16:29

Johnty



I think that you should adopt the official Roman Catholic advice and use the withdrawal method?????????l

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
08/10/2008 16:40

hi all.. according to darling this morning guarenteeing 100% of investors money even in the failed Icelandic banks...

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
08/10/2008 16:42

The TRNC government cover the first 10000 euros. When asked if this was per account or per person, 2 banks didnt know!

One came up with a valid point that they ( Garanti, a Turkish bank) had more equity than the TRNC government who are basically bust! So is their cover worth anything at all.

Research on the web shows that since 2001 when a lot of turkish banks went bust they have been so contolled by the government that they are in a better position than many other countries. They are not lending very much, if anything outside Turkey and have a much lower loan to value ratio than many places, ie no sub-prime rubbish.

So no recommendations just a little more fact.

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
08/10/2008 17:22

No1 Doyen..from one old codger to another,no offence taken,but you probably are right in the fact that we dont spread it around to try and avoid any problems,but Iwas looking at a list of who owns who in the financial world and wihout having that list I could have ended up thinking Iwas safe only to fid out later that all my eggs were still in the same basket.....

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
08/10/2008 17:31

All this talk of guarantees gives people false sense of security. If my bank fails, how long will it take TRNC government to pay me with no interest? It will depend largely on how long it will take to persuade Turkey and that will depend on her position financially at the time. Never trustg the politicians, their guarantees are not worth any more than the ones you got from your developer of estate agent.



I would say just spread it around in equal shares. Use at least 3 banks and if they all fail, just blame your luck.

ismet

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
08/10/2008 17:58

What worries me is how big is this basket everybody has their eggs in?

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
08/10/2008 19:03

No1Doyen



I don't understand your post below.



I would guess that it's the 'mature' age group that invest the most. Most of this age group are happy to deposit their funds with one institution and not 'spread it around', thereby lessening the potential risk. I hope I haven't come across as being derogatory to the older generation. (DOH! I am one)



Surely not spreading it around increases the risk and not lessen it.



You will find that quite a number of people go to see their "friendly" bank when they have money to invest and are urged to deposit their money with that organisation, it all goes towards them beating their targets!!!!!!!!!!

Perry


Joined: 27/01/2007
Posts: 413

Message Posted:
08/10/2008 23:31

Elko - you are so right - how would they be in a position to fund this, and can you imagine what you would have to go through to get your money !!



HSBC is absolutely the best and safest option - their exposure to the 'toxic debt' has been minimal (along with JPMorgan). Note they are the only bank to confirm they will not need govt assistance on their UK operations. Speaks volumes.

mickey rourke


Joined: 27/08/2008
Posts: 157

Message Posted:
09/10/2008 07:41

HSBC operate as a global bank, and as such (as was stated by their chairman last week on hardtalk) each part of the bank is a seperate entity tied to the country it is based in, their strength is in the fact that if one part fails the others can carry it, but if a lot of parts fail it will become another statistic.

HSBC here in TRNC is a subsidery of the Turkish sector so will largely be governed by what happens there.

Indeed their chairman stated in the same interview that their UK arm would not need government assistance IN THE MEANTIME this also speaks volumes !

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
09/10/2008 09:18

lovingincyprus. What I tried to say was that some of the 'mature' investors deposit their funds with one instituion perceiving it to lessen the risk. Of course you are quite correct, by spreading your investments around you do lessen the risk,

Sorry for not explaining clearly - it's an age thing. (thats my excuse anyway)

dozza67


Joined: 11/07/2008
Posts: 607

Message Posted:
09/10/2008 09:58

Here's a thought. If? the banks went bust here, how would this affect our applying for residencies. As you all know, we have to show proof of money in our bank accounts. Would they fail you and not give you another years residency and in that case what then?????

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
09/10/2008 10:13

we would have no problems as ours is invested off shore and secure.

dougskud



Joined: 04/04/2008
Posts: 356

Message Posted:
09/10/2008 10:38

I am in no way an expert on investing money so my thoughts on this point is to look at the question and apply it to facts I know a little more about.



Question. Is Turkey and Northern Cyprus generally speaking far more efficient and organised than any other western country?



Answer. In my experience the opposite is true.



Question. Do the Government of Turkey and Northern Cyprus operate on very sound and well thought through long term policies?



Answer. In my experience the opposite is true.



Question. Is the economy of Turkey and Northern Cyprus growing faster than any other western country with inflation under control, unemployment at an all time low, and a population all sharing a really good feeling of their lot in life?



Answer. In my experience the opposite is true.



One further point in an environment where banks all over the world are collapsing it makes" throwing in the towell" with no compensation that much easier.



Good luck





Doug

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
09/10/2008 11:23

Do the Government of Turkey and Northern Cyprus operate on very sound and well thought through long term policies?...............................



In relation to what?

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
09/10/2008 11:49

This compensation for TRNC banks collapsing, where does the money come from? Cant come surely from the already bankrupt Govt so would surely have to be paid by extra taxes. Cant see the Turkish Taxpayer doing it.