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My bank (in Canada) has limits on how much I can withdraw per day, per week, per month. Furthermore, there could be a delay of up to 5 business days before I ca
by hackly 4y ago
My bank (in Canada) has limits on how much I can withdraw per day, per week, per month. Furthermore, there could be a delay of up to 5 business days before I can get the money to its destination. And that’s for money in the thousands only. How is that money in the billions can be withdrawn so quickly esp. since these were high value accounts each in the millions/billions? Couldn’t they just use one of their terms or conditions to delay the withdrawals and give themselves ample time to react?
- computerex 4y agoI don't think it would have meaningfully helped. Once the word was out that the bank was in distress it was game over. Company I work for also pulled out.
- bitdivision 4y agoI doubt those limits would apply to business accounts, which I'd guess were the majority of the withdrawals here. Are you sure the limits on your account would apply to e.g. a wire transaction? Of course there are limits on ATM withdrawals and some other transfer methods, but I'm not sure they'd apply if you wanted to send a wire.
- chii 4y ago> I'm not sure they'd apply if you wanted to send a wire. Not many people (at least, people who don't deal with large sums) have experience with doing a wire transfer. Sometimes they're a bitch to deal with - but it's what you'd use if you are doing very large sums (like, in the order of 6 or 7 figures or more).
- inglor_cz 4y agoInteresting. Where? In most of Europe, wire transfers are really easy to do, and where I live, most banks now support instant wire transfers (10 seconds) under some limit (in my case, 15 000 Eur). Doing them using QR codes and smart banking apps is really straightforward and user-friendly, so people do them routinely even for small sums.
- chii 4y ago> support instant wire transfers that's not the wire transfer i am referring to - it's the one where you'd use a SWIFT code to designate the bank.
- inglor_cz 4y agoThis is something that probably differs in EU and the US. Between EU countries, you need SWIFT, but within a single country, you usually don't (I think the exception is Poland, where SWIFT is the default...?).
- ars 4y agoThat's very odd. I don't know if it's your bank, or something specific to Canada. In the US the only limits are via the ATM or Debit card. If you write a check, go in person, or send a wire, you can withdraw as much as you want, with no time delay or restriction. > Couldn’t they just use one of their terms or conditions to delay the withdrawals and give themselves ample time to react? That's simply not a thing.
- pavon 4y agoEvery bank I have used in the US has limits and time delays for ACH transfers. While you can take out more with a check, practically speaking those take longer to process than an ACH transfer. And you already mentioned the limits with Debit and ATM. So all the methods that average consumers use to interact with their banks have limits and/or delays, and they may not be aware of other options.
- nullc 4y agoThe bank will happily tell you that wire transfers have no limits or delays.
- notch898a 4y agoYes my bank says that, but as soon as I actually do it they suddenly have to "do KYC" aka hold it up for days and give me lots of bullshit reasons why an already thoroughly KYC'd account needs to wait for a wire because reasons. Meanwhile not only can you not access the money in either of your accounts, the bank is drawing sweet sweet overnight IORB interest on it.
- ozi 4y agoNo business is going to park their working capital with a bank that has those requirements.
- fsckboy 4y agono bank is going to give carte blanche to large customers to run the bank, they can't, and even if they promise it... As with all businesses, like a restaurant wants you to enjoy your food so you come back, the bank wants to provide the services the customers need. But everybody can't have everything especially all at once, and banks can't provide liquidity that has dried up. sure, customers will periodically get mad and take their business elsewhere, but it's a fever dream to think that elsewhere is any different.
- quesera 4y ago> no bank is going to give carte blanche to large customers to run the bank If the funds are in a DDA (Demand Deposit Account a/k/a standard US checking account), the bank is legally obligated to honor outflow transfers of any size, at any time. (Not physical cash withdrawals, although they have to make timely arrangements to satisfy these too) Banks can make DDAs unattractive for large balances (e.g. no interest), but I'm not aware of any limitation on a customer's right to access their funds held in a DDA. If banks could bend these rules, bank runs would never happen.
- fsckboy 4y ago> the bank is legally obligated to honor outflow transfers of any size, at any time they should have legally obligated SVB to remain solvent!
- quesera 4y ago> they should have legally obligated SVB to remain solvent! They did! When SVB failed to meet those regulatory obligations, the bank was seized and the depositors were made whole. So the system worked, right?
- tacostakohashi 4y agoDoes it, in fact, not permit you to get to the entire balance immediately via, say, cash or a bank check? It sounds like you are referring to something like an ATM withdrawal limit or online transfer limit which is just a risk / fraud limiting measure for those particular channels rather than a limitation on the account itself.
- timcederman 4y agoLive Oak Bank limits business account withdrawals to $250k/day.
- lazide 4y agoThat’s a policy thing to limit capital outflows, not a technical limitation.
- fsckboy 4y agobut that's exactly what we're talking about
- shalmanese 4y agoIf you have a business which pays fortnightly and the average employee makes $250K, then just payroll for 26 employees will reach your limit.
- nulbyte 4y agoYou don't need currency to facilitate payroll; it's a series of transfers, not withdrawals. And the recipients don't usually need that much currency either, even if they do bank at the same place.
- yardie 4y agoIs that for a debit card? I understand the liability in draining a checking account with nothing more than a 4-digit PIN. On the other hand, I would never bank at a place that made withdrawal restrictions a condition to access my money.
- loopdoend 4y agoThis does not reflect the reality of business bank accounts in Canada. When you have treasury access you can wire as much money as you want practically instantly just like with SVB. I bank with one of the big 5. Nothing is stopping you from going into your bank and wiring money away it's just cash that they don't want to give out without multi-day delays.
- appleiigs 4y agoEven in Canadian personal account you can wire as much as you want out - same day value to the destination. Only limitation is if you want it in cash because they'll have to get the paper bills delivered since the branch only holds so much paper bills.
- ant6n 4y agoHow would you pay for a house? Or a car?
- PakG1 4y agoI presume a withdrawal is different from a wire transfer or cheque.
- aeyes 4y agoI'm not sure about the specifics but we had an account at SVB and weren't able to get it all out because of such limitations. I don't know exactly how the limits work because we definitely did ACH transfers in the millions before. Also, it's not a cash withdrawal. We just wired the money to other accounts. Cash would require tons of paperwork.
- trhr 4y agoYou're confusing real money with fake money. In America, we can only withdraw so much real money every day, too. The banks will tell you things like "We only keep $2000 in real money in the safe." But the fake money never gets printed. It just lives in bits and bytes. You can move it around as much as you want. Fortunately, it's as good as real money. It's just not as good as real wealth. Real wealth is in ammunition. Never goes down in price, skyrockets in price when the world gets more dangerous, and can be used to protect itself. That's where America has you beat, because we can turn fake money into ammunition whenever we want, as fast as we want. Not to mention, it's a consumable resource that keeps well in storage but requires a high level of technology to produce. And even under non-apocalyptic conditions, it's about half as efficient as silver coins by weight and volume. People downvoting this are politically opposed to guns because that's the fashionable thing to be in SV, but hackers have a strong gun culture. Always have, always will. Because we're practically all either anarchists or military.
- anonymouskimmer 4y ago> People downvoting this are politically opposed to guns Are you sure they're not downvoting you for being completely off topic while ranting about a hobbyhorse?
- trhr 4y agoThey could be. It's highly possible a bunch of engineers watched their backyard bank collapse and thought, "this is fine, I'm not worried, I'm a millionaire" when they don't even own a fuckin' home.
- deleted 4y ago[deleted]
- 8ytecoder 4y agoDemand Deposit Accounts also allow you to withdraw without any advance notice. Most companies will have one. They wouldn’t want to sit around and wait for a banker to pay their suppliers or make payroll. Usually, most operational expenses like that are integrated into whatever systems they use and money moves where they want it to.
- exhibitapp 4y agoMy business has 8 figures in the large canadian banks. I have had no problem sending all of it from institution to institution in single wires. Businesses can definitely move money at once. The banks have corporate customers sign a number of complicated forms to put limits on things like who can wire, who can sign, who can weite cheques etc. There are further controls in the online corporate banking