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I wonder what steps they are taking to avoid a complete, Armageddon-style bank run in Cyprus?

by DrJokepu 14y ago

iwwr 14y ago
Banks are closed, money in ATMs is gone. Currency and cash controls are expected to remain in force.
- gasull 14y ago
  This Cypriot redditor gives more details: http://www.reddit.com/r/europe/comments/1aeht8/eurozone_and_imf_agree_10bneuro_cyprus_bailout/c8wouo2 http://www.reddit.com/r/europe/comments/1aeht8/eurozone_and_...
tomp 14y ago
Why would that happen? Unless you expect more "tax", bank runs aren't reasonable... The article states that you wouldn't be able to withdraw more money than you have (today - 10% tax) anyways.
- DrJokepu 14y ago
  People being human beings and often driven by emotions rather than rational decisions, even if only a proportionally small group of depositors lose their confidence in banks and chose to withdraw their savings, such an event could quickly snowball into a complete panic where the one-off 10% levy is the least of people's problems as if people expect that the banking system will collapse (and once again, rational decisions play no part here, much of the banking system is built on trust) they would desperately try to get hold of their savings even after the levy has been imposed.
- coldtea 14y ago
  >Why would that happen? Unless you expect more "tax" Of course people would expect more tax. As for assurances, they don't mean anything. Just five days ago they were assured by the Finance Minister that "no bank tax would happen". And then boom. So, a bank run DID happen after the news emerged. But the people found the banks were closed and ATMs had restrictions. The banks will be closed for several more days.
- tomjen3 14y ago
  Revenge. The banks screwed us today, we destroy them tomorrow -- this also is a good lesson because the banks will want to prevent this for the next time. Lets crash all the banks than then build something good from the ashes.

I wonder what steps they are taking to avoid a complete, Armageddon-style bank run in Cyprus?

iwwr 14y ago

Banks are closed, money in ATMs is gone. Currency and cash controls are expected to remain in force.

gasull 14y ago
This Cypriot redditor gives more details: http://www.reddit.com/r/europe/comments/1aeht8/eurozone_and_imf_agree_10bneuro_cyprus_bailout/c8wouo2 http://www.reddit.com/r/europe/comments/1aeht8/eurozone_and_...

tomp 14y ago

Why would that happen? Unless you expect more "tax", bank runs aren't reasonable... The article states that you wouldn't be able to withdraw more money than you have (today - 10% tax) anyways.

DrJokepu 14y ago
People being human beings and often driven by emotions rather than rational decisions, even if only a proportionally small group of depositors lose their confidence in banks and chose to withdraw their savings, such an event could quickly snowball into a complete panic where the one-off 10% levy is the least of people's problems as if people expect that the banking system will collapse (and once again, rational decisions play no part here, much of the banking system is built on trust) they would desperately try to get hold of their savings even after the levy has been imposed.
coldtea 14y ago
>Why would that happen? Unless you expect more "tax" Of course people would expect more tax. As for assurances, they don't mean anything. Just five days ago they were assured by the Finance Minister that "no bank tax would happen". And then boom. So, a bank run DID happen after the news emerged. But the people found the banks were closed and ATMs had restrictions. The banks will be closed for several more days.
tomjen3 14y ago
Revenge. The banks screwed us today, we destroy them tomorrow -- this also is a good lesson because the banks will want to prevent this for the next time. Lets crash all the banks than then build something good from the ashes.