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silver_bird
05-10-2008, 02:08 PM
With news about banks failing in other parts of the world, should we worry about our money in the bank?
http://www.nst.com.my/Current_News/NST/Sunday/Frontpage/2366108/Article/index_html

There's hope even for your Unit Trust Investment
http://www.nst.com.my/Current_News/NST/Sunday/Frontpage/2366111/Article/index_html

palmdoc
17-10-2008, 08:58 AM
A "guarantee" of RM60,000 per depositor per bank doesn't sound very reassuring

On the other hand in Singapore....
Bank Deposits Guaranteed (http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_291494.html)
- for the full amount

scorgio
17-10-2008, 09:54 AM
A "guarantee" of RM60,000 per depositor per bank doesn't sound very reassuring

On the other hand in Singapore....
Bank Deposits Guaranteed (http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_291494.html)
- for the full amount
It's the same here lah.
Read:-
http://thestar.com.my/news/story.asp?file=/2008/10/17/nation/2305405&sec=nation

rachel sj
17-10-2008, 10:21 AM
A "guarantee" of RM60,000 per depositor per bank doesn't sound very reassuring

On the other hand in Singapore....
Bank Deposits Guaranteed (http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_291494.html)
- for the full amount

Yes...and note it is up to RM60K per depositor (ie per legal ownership) and per bank...so imagine if i have 1 current ac, 1 saving ac and 1 FD ac maintained in ABC Bank Berhad, should ABC Bank fail, I can only claim back RM60k since the 3 acs are opened in my sole name ie sole depositor.

silver_bird
17-10-2008, 10:23 AM
Malaysia and Singapore to guarantee all bank deposits

Your bank deposits (including Bank Rakyat) is 100% guaranteed by our Govt.
No more capped to RM60k as per PIDM's rule.

http://thestar.com.my/news/story.as...5405&sec=nation

Cheers !!!

PeterHng
17-10-2008, 10:23 AM
Rachel, the para on the guarantee stated as follows :-

"All ringgit and foreign currency deposits placed with financial institutions regulated by Bank Negara will be fully guaranteed by the Government with immediate effect, the central bank said in a joint statement with the Ministry of Finance posted on its website."

:) :)

palmdoc
17-10-2008, 10:23 AM
It's the same here lah.
Read:-
http://thestar.com.my/news/story.asp?file=/2008/10/17/nation/2305405&sec=nation

What exactly does "Fully guaranteed" mean? It does not explicitly state "Full amount" guaranteed. There's the difference here with the Star, NST report versus the Straits Times report.
It could be "Fully guaranteed' .... up to RM60 K :eek:

silver_bird
17-10-2008, 10:30 AM
This morning (17/10) I called Bank Negara @ 2698-8044 and PIDM @ 1 800 88 1266, both confirmed wef today Govt offers 100% Guarantee for your money in the banks until year 2001. Your FD of RM100k in one bank under one account is 100% guaranteed.

scorgio
17-10-2008, 10:50 AM
What exactly does "Fully guaranteed" mean? It does not explicitly state "Full amount" guaranteed. There's the difference here with the Star, NST report versus the Straits Times report.
It could be "Fully guaranteed' .... up to RM60 K :eek:
Don't be oversensitive.
Get a copy of newspaper and read it.
AFAIK, I didn't see the words "UP TO RM60000" on the press release, as of now.

HTCHONG
17-10-2008, 10:53 AM
What exactly does "Fully guaranteed" mean? It does not explicitly state "Full amount" guaranteed. There's the difference here with the Star, NST report versus the Straits Times report.
It could be "Fully guaranteed' .... up to RM60 K :eek:

It is full amount guaranteed...no cap...it is valid till 31 Dec 2010. :D :D :D

kpc
17-10-2008, 10:57 AM
What does it mean by "valid up to year 2010"?

Does it mean that if you left your deposit with the bank after 2010, it wont be guaranteed?

rachel sj
17-10-2008, 11:12 AM
Rachel, the para on the guarantee stated as follows :-

"All ringgit and foreign currency deposits placed with financial institutions regulated by Bank Negara will be fully guaranteed by the Government with immediate effect, the central bank said in a joint statement with the Ministry of Finance posted on its website."

:) :)

good to hear that ! now they're all fully guaranteed !!

HTCHONG
17-10-2008, 11:14 AM
What does it mean by "valid up to year 2010"?

Does it mean that if you left your deposit with the bank after 2010, it wont be guaranteed?

Well, I perceive this way...it will revert back to previous ruling. For example, Malaysia will cap up to RM60K after 31 Dec 2010.

tupai
17-10-2008, 12:52 PM
This morning (17/10) I called Bank Negara @ 2698-8044 and PIDM @ 1 800 88 1266, both confirmed wef today Govt offers 100% Guarantee for your money in the banks until year 2001. Your FD of RM100k in one bank under one account is 100% guaranteed.

wat happen if i have say rm2,000,000 in FD? Also guarantee ah?? All these fully guarantee news from the gomen yet the advertisement say only Rm60000 is soooooo confusing...

I kesian those with multiples of rm100,000 X many folds in FDs here...getting conflicting news...hahahahah...

Also ha? my company bank FD safe or not? How much they guarantee? rm60k or unlimited??? What about say YTL maybank bank account got RMGodzillion then how??

Yang Blur sotong latotupai

layman
17-10-2008, 12:57 PM
its a double edge sword for a 100% gaurantee in our bank deposits-this means all commercial banks will have to set aside X $ to the central bank in order to fulfill her promise of complete reimbursement in the event of a run/failed bank

this will inevitably curtailed the lending activities of these banks-more money pledge/stored in the reserves-less for lending and of course profitably will decline-not good news to shareholders and for some businesses,they may have to close for lack of funds or temporary cash flow problems

of course banks here are better than the one's in US which in essence are nationalised institutions-that means beholden to the government.Their lending practises may be 'skewed'-no more risk taking(rakyats money)and may stifle the entire normal mechanism of running a banking business

HTCHONG
17-10-2008, 01:10 PM
....this means all commercial banks will have to set aside X $ to the central bank in order to fulfill her promise of complete reimbursement in the event of a run/failed bank

this will inevitably curtailed the lending activities of these banks-more money pledge/stored in the reserves-less for lending and of course profitably will decline-not good news to shareholders and for some businesses,they may have to close for lack of funds or temporary cash flow problems....

Yes...there will be impact to the market. For the next couple of months probably the effect will surface...my guess.

HTCHONG
17-10-2008, 01:21 PM
wat happen if i have say rm2,000,000 in FD? Also guarantee ah?? All these fully guarantee news from the gomen yet the advertisement say only Rm60000 is soooooo confusing...

I kesian those with multiples of rm100,000 X many folds in FDs here...getting conflicting news...hahahahah...

Also ha? my company bank FD safe or not? How much they guarantee? rm60k or unlimited??? What about say YTL maybank bank account got RMGodzillion then how??.....

I am not too sure about the coverage from Malaysian Government which I have not seen any official statements from the authority, so it is better not to speculate here...following is the statement from Singapore authority...

"All depositors, big and small, corporates and individuals, including those under the current Deposit Insurance Scheme administered by the Singapore Deposit Insurance Corporation will now enjoy protection from the Government on the full amount of their deposits for the duration of the guarantee," said the statement by MAS and the Ministry of Finance."

http://business.asiaone.com/Business/News/Story/A1Story20081017-94315.html

AllUrban
17-10-2008, 01:49 PM
its a double edge sword for a 100% gaurantee in our bank deposits-this means all commercial banks will have to set aside X $ to the central bank in order to fulfill her promise of complete reimbursement in the event of a run/failed bank

this will inevitably curtailed the lending activities of these banks-more money pledge/stored in the reserves-less for lending and of course profitably will decline-not good news to shareholders and for some businesses,they may have to close for lack of funds or temporary cash flow problems

of course banks here are better than the one's in US which in essence are nationalised institutions-that means beholden to the government.Their lending practises may be 'skewed'-no more risk taking(rakyats money)and may stifle the entire normal mechanism of running a banking businessActually, this is a multi-edged sword...

The guarantee will reduce lending activities among banks, which will reduce the supply of money in the economy and reduce production and investment - this will lead to a more rapid slowdown in economic growth.

However, at the same time, the announcement of the guarantee will encourage Malaysians to keep their money in the bank...which will allow the banks to have more capital to play with...meaning they can lend to the less risky investments...and that means a faster recovery of economic growth

On top of that you might see a decrease in interest rates at some point which will encourage investments and loans...

But when banks choose to take less risk then they will not serve the more risky markets...this in itself can be a problem...as these people who cannot get bank loans might turn to money lenders instead....

Cheers, m

rachel sj
17-10-2008, 02:06 PM
The guarantee will reduce lending activities among banks, which will reduce the supply of money in the economy and reduce production and investment - this will lead to a more rapid slowdown in economic growth.



Hi AllUrban - How would this guarantee reduces inter-bank lendings, may I know ?

AllUrban
17-10-2008, 02:27 PM
Hi AllUrban - How would this guarantee reduces inter-bank lendings, may I know ?banks would have to keep a larger portion of their deposits within the bank and they would also have to keep a larger portion of their deposits with Bank Negara....instead of lending these deposits out to borrowers....

(the borrowers might be other banks or companies or consumers)

This is a a de facto increase in the reserve ratio .... forcing the banks to keep a greater ratio of reserves and resulting in a lower ratio of loans...hence, lower growth in the money supply...and lower growth in the economy.

Cheers, m

silver_bird
17-10-2008, 03:42 PM
N/papers had done their part to disseminate news. If in doubt and still want accurate info, call PIDM or Bank Negara. Otherwise, pls don't speculate !!!

blues
17-10-2008, 04:29 PM
N/papers had done their part to disseminate news. If in doubt and still want accurate info, call PIDM or Bank Negara. Otherwise, pls don't speculate !!!

exactly,the same thing info publish in the web forum.
any doubt, please do the checking.

BTK
17-10-2008, 08:28 PM
You can always e-mail them at info@pidm.gov.my and surprisingly when I did that, I got a reply within 24 hrs. The answers they gave did clarify my concerns.

mykern
17-10-2008, 09:07 PM
BTK .. please share your concerns and their reply, la!~
Considering the herd mentality, people will start withdrawing their cash and putting it is the safe deposit lockers, and this will reduce the Banks liability when the time comes!~

kuma
18-10-2008, 02:28 AM
Reading all the posts here is reassuring no doubt, however we need to ask ourselves - Are we trying to reassure ourselves?

The National Banks worldwide are now assuring and offering a guarantee on peoples money with the hope that there will be no run on the banks.

The questions that need be answered are:

1. Why now, when all this while we were only assured up to a certain amount? If it was not safe enough to assure it before (before the crisis), how could it be 'safer' now?

2. What are the conditions attached to this guarantee? Does it mean that I will always have my money on demand, even if the 'doom and gloom' as professed by the gurus take place?

Anyway, even if you want to take it all out, where are you going to keep it? With the state of crime these days, you might not even reach home.

Send it elsewhere? But where? The situation is no different, in fact worse in the previously designated safe havens.

The scenario this time is not like in '97. This time around, it might be better to leave it all in our banks and hope for the best.

Just my 2sen worth......not that I have loads of money in the bank to worry about. :D

I think the bigger concern is the state of the economy and inflationary forces. Can we keep our jobs or make enough money in the year ahead, so that we can put food on the table and pay our loans. If the banks got no money, they are going to chase you to pay up. I think we can expect calls even if we are 1 day late. :rolleyes:

USJ27Resident
18-10-2008, 10:30 PM
Anyway, even if you want to take it all out, where are you going to keep it? With the state of crime these days, you might not even reach home.

That is one question I've been asking myself lately... :confused: Must buy bigger mattress... :p

great
18-10-2008, 10:43 PM
I only saving fewer hundred in Local Bank,thought foreign bank maybe safety

orchipalar
19-10-2008, 07:03 AM
Err buddies...how about putting max. 60,000 into each different bank...
when Orchi has 1,000,000...???

1. 60K into Maybank...
2. 60K into CIMB...
3. 60K into HongLeong...
4. 60K into Public Bank...
5. 60K into Standard Chartered...
6. 60K into HSBC...
7. 60K into Alliance Bank...
8. 60K into AM Bank...
9. 60K into Citi Bank...
10. 60K into UOB Bank...

Err...can anyone name few more banks in Malaysia...in order for
Orchi to complete the list...???

11. 60K into OCBC Bank...
12. 60K into....Bank Simpanan National
13. 60K into....Bank Pertanian
14. 60K into....Bank Muamalat(sp?)
15. 60K into....?
16. 60K into....?

17. 40K into....?

Geez...that's only 1 million...

there won't be enough different banks for Orchi....when Orchi has 1.5 million to deposit...at 60K each...

silver_bird
19-10-2008, 07:52 AM
15. 60K into.... Bank Rakyat
16. 60K into.... Bank Islam
17. 60K into.... Bank TTP

daniella
19-10-2008, 01:44 PM
Wah Orchi...aiseh man...you are one RICH man!!!!

I like to get to know you better :D

Let me know when you go to the banks, I would like to be your `bodyguard` :p

AllUrban
19-10-2008, 02:21 PM
15. 60K into.... Bank Rakyat
16. 60K into.... Bank Islam
17. 60K into.... Bank TTP
18. 60K into.... Affin Bank
19. 60K into.... EON Bank
20. 60K into.... Al Rajhi Bank
21. 60K into.... Kuwait Finance House
22. 60K into.... ABN-AMRO
23. 60K into.... Ah Long (M) Sdn. Bhd. (subsidiary of Ah Long Pte. Limited)

Cheers, m

USJ27Resident
19-10-2008, 04:32 PM
23. 60K into.... Ah Long (M) Sdn. Bhd. (subsidiary of Ah Long Pte. Limited)

Cheers, m

hahahaa.... even our resident Canadian oso is exposed/familiar with these fellas... dude, any reminisence of the American Godfathers [mafia] loansharking business ;)

mykern
19-10-2008, 08:21 PM
I don't think BNM allows a malaysian subsidiary of a singapore company. Try Mapilai Rumbe Kase Chettiar instead. :D

orchipalar
19-10-2008, 11:41 PM
Err buddies..wait a minute...Orchi just heard money saved with
foreign owned banks...are not guaranteed by Bank Negara...

Is that true...?

kuma
19-10-2008, 11:48 PM
Err buddies..wait a minute...Orchi just heard money saved with
foreign owned banks...are not guaranteed by Bank Negara...

Is that true...?

that might be true.....but then again aren't all banks here already localized?

orchipalar
19-10-2008, 11:56 PM
that might be true.....but then again aren't all banks here already localized?Err buddy Kuma...are banks such as Bank of Tokyo or Bank of China...Bank of Nova Scotia or Bangkok Bank...allowed to take deposits...?

Those would NOT be localized...perhaps?

kuma
20-10-2008, 12:38 AM
Err buddy Kuma...are banks such as Bank of Tokyo or Bank of China...Bank of Nova Scotia or Bangkok Bank...allowed to take deposits...?

Those would NOT be localized...perhaps?

Yep, I thought of them, but wasn't sure if they were localized or still take deposits and have checking accounts.

mykern
20-10-2008, 08:24 AM
All of them have been locally incorprated since the mid 1980s ...
Why now only think about this?

AllUrban
20-10-2008, 09:41 AM
hahahaa.... even our resident Canadian oso is exposed/familiar with these fellas... dude, any reminisence of the American Godfathers [mafia] loansharking business ;)reminisence? Not really...Toronto has more activity from biker gangs than mafia...mafia are pretty quiet in Toronto with the occasional hit.

Hamilton and Montreal are bigger mafia haunts than Toronto is. They are closer to the US and have a more industrial economy
Yep, I thought of them, but wasn't sure if they were localized or still take deposits and have checking accounts.some banks may only provide loans or act with the mortgage sector or as a merchant bank.

Scotiabank is one of these...it is not open to regular customers here in Malaysia but it operates as a full-service bank in Canada.

Cheers, m

HTCHONG
20-10-2008, 11:53 AM
....this will inevitably curtailed the lending activities of these banks-more money pledge/stored in the reserves-less for lending and of course profitably will decline-not good news to shareholders and for some businesses,they may have to close for lack of funds or temporary cash flow problems....

You see.. the effect start to surface now..."Are banks tightening up on housing loans? (http://www.asiaone.com/Business/News/My%2BMoney/Story/A1Story20081019-94745.html) ".