TRNC Bank Interest

Skogsy


Joined: 15/05/2008
Posts: 339

Message Posted:
29/12/2008 07:43

For the economists amongst us.



If the TRNC banks are buying our money at around 12% -18% interest then where are they making their money?

All I have heard recently is doom and gloom around the worlds financial markets.



Skogsy

deecyprus4


Joined: 27/07/2008
Posts: 3452

Message Posted:
29/12/2008 08:01

loans out the same as all banks in the world

punktlich


Joined: 25/12/2008
Posts: 50

Message Posted:
29/12/2008 15:33

See this earlier post:

http://www.cyprus44.com/forums/1529.asp

and these:

http://www.northcyprusforum.com/general/79-banks-north-cyprus.html

http://en.wikipedia.org/wiki/HSBC_Bank_(Turkey)

http://www.northcyprusonline.com/North-Cyprus-Online-Property-Types-of-Banks.php

You need to concern yourself about political risk and exchange risk. Remember years ago many people deposited money, often in US dollars, in Mexican banks only to find that when Mexico devalued the peso it also blocked foreign exchange and compulsorily converted foreign currency deposits into pesos. The notorious traitor and anti-Semite, former American diplomat Tyler Kent, lost all his money (more exactly his wife's money) in that fiasco.

Expats need to balance foreign exchange risk carefully as British expats in the euro zone are discovering. I imagine, but don't know for sure, that the UK pays COLAs to retirees on state pension living in NC since they attribute its sovereignty to an EU member state.

rsalih


Joined: 01/11/2008
Posts: 306

Message Posted:
29/12/2008 19:20

punktlich.. what do you mean 'uk pays COLAs' . what is it.....?

Skogsy


Joined: 15/05/2008
Posts: 339

Message Posted:
29/12/2008 19:38

Rsalih

Maybe something like

Lipsmackin thirst quenchin ace tastin motivatin good buzzin cool talkin high walkin fast livin ever givin cool fizzin..... Cola just doesnt fit does it??

Skogs

rocking


Joined: 05/11/2008
Posts: 421

Message Posted:
29/12/2008 19:42

If banks are giving 12 - 18% on deposit, then they have to invest it at 21% upwards - with these high sorts of figures I would be very careful. It was around 1991 that about 8 banks went bust over-night and people lost a lot of money. I think I would rather have a little interest and be sure than worry that I would wake up one money and had not one penny. Please be careful.

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
30/12/2008 15:03

just think what will happen when all those who took loans from the bank here default!

about the same as in the uk i guess.