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Why good financial management is not a competitive factor amongst banks? As in: bank with us because we are financially sound (instead of: because we pay highe
by opminion 14y ago
Why good financial management is not a competitive factor amongst banks?
As in: bank with us because we are financially sound (instead of: because we pay higher interest, or whatever). It's not happening yet.
- untog 14y agoThere's no reason it couldn't be. Within the US there are public figures available stating which banks have been the best and which have been the worst in the last few years. There is nothing to stop customers banking on this basis. They still don't, perhaps largely because the government insures up to $1xx,xxx in deposits (I forget the number) so a lot of people are covered no matter what happens to their bank.
- akama 14y agoI believe in the US the government insures up to $250,00.
- kyriakos 14y agoDeposits in Cyprus and the whole eurozone are covered by 100000 euro insurance per account. The problem in the particular case though is that Cyprus Central Bank in case the banks close down will be required to pay depositors a total of 30 billion euro which it doesn't have.
- opminion 14y agoSo, silly idea here: would reducing the government guarantee improve anything?