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I've noticed some similar in America recently. I've got friends who move 5-6 figure sums for various personal businesses, and their banks have been extra critic

I've noticed some similar in America recently. I've got friends who move 5-6 figure sums for various personal businesses, and their banks have been extra critical of their transactions. One bank got so annoying, that my friend tried to close the account, and couldn't! Lately hearing more and more stories about people getting de-banked, as been making me feel a little nervous. In the cases of the banks and my business friends, I'm more worried the banks are extremely over leveraged and don't want to part with any cash (like 2008 on steroids).

vineyardmike 4y ago
> I'm more worried the banks are extremely over leveraged and don't want to part with any cash Worry not because banks are actually the opposite! They have so much cash they don’t want it! They’re still near an all time high (peaked in 2021). This is the reason that most bank account interest rates haven’t increased despite fed rates increasing - banks don’t want to incentive taking on more cash to their books. Some banks obviously specialize in high interest accounts, usually because they do unusual things with their books, or as a marketing measure, but the major banks don’t need to raise rates. Current data (2022): https://fred.stlouisfed.org/series/DPSACBW027SBOG https://fred.stlouisfed.org/series/DPSACBW027SBOG 2020: https://www.wsj.com/articles/now-banks-problem-is-too-much-cash-11585911603 https://www.wsj.com/articles/now-banks-problem-is-too-much-c... 2021: https://www.barrons.com/articles/banks-are-drowning-in-cash-why-thats-a-problem-51619120030 https://www.barrons.com/articles/banks-are-drowning-in-cash-...
Symbiote 4y ago
An American regularly transferring a typical annual salary is nothing like Nigeria restricting withdrawals to 0.5% of an annual salary.
- vineyardmike 4y ago
  To be fair, this is probably a big number for most Nigerians. This is like 16k if you withdraw daily, and a quick google search says that this is 2x the median salary there. It's probably comparable to $500-$1000 withdrawal in America.
nicbou 4y ago
With coronavirus lockdowns and the Russian invasion later, I realised that one can quickly become trapped: locked accounts, useless money, no way to leave. The tax office also froze my bank account once because of a mistake on their end. It lasted a whole week because of holidays. I could not transfer or withdraw money. Since then, I transferred money for safekeeping with my parents abroad, and withdrew enough cash to keep me afloat for some time.

vineyardmike 4y ago

> I'm more worried the banks are extremely over leveraged and don't want to part with any cash Worry not because banks are actually the opposite! They have so much cash they don’t want it! They’re still near an all time high (peaked in 2021). This is the reason that most bank account interest rates haven’t increased despite fed rates increasing - banks don’t want to incentive taking on more cash to their books. Some banks obviously specialize in high interest accounts, usually because they do unusual things with their books, or as a marketing measure, but the major banks don’t need to raise rates. Current data (2022): https://fred.stlouisfed.org/series/DPSACBW027SBOG https://fred.stlouisfed.org/series/DPSACBW027SBOG 2020: https://www.wsj.com/articles/now-banks-problem-is-too-much-cash-11585911603 https://www.wsj.com/articles/now-banks-problem-is-too-much-c... 2021: https://www.barrons.com/articles/banks-are-drowning-in-cash-why-thats-a-problem-51619120030 https://www.barrons.com/articles/banks-are-drowning-in-cash-...

Symbiote 4y ago

An American regularly transferring a typical annual salary is nothing like Nigeria restricting withdrawals to 0.5% of an annual salary.

vineyardmike 4y ago
To be fair, this is probably a big number for most Nigerians. This is like 16k if you withdraw daily, and a quick google search says that this is 2x the median salary there. It's probably comparable to $500-$1000 withdrawal in America.

nicbou 4y ago

With coronavirus lockdowns and the Russian invasion later, I realised that one can quickly become trapped: locked accounts, useless money, no way to leave. The tax office also froze my bank account once because of a mistake on their end. It lasted a whole week because of holidays. I could not transfer or withdraw money. Since then, I transferred money for safekeeping with my parents abroad, and withdrew enough cash to keep me afloat for some time.