How safe is your money in north Cyprus banks?

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
11/01/2010 14:55

"Local Turkish banks have a deposit protection scheme called the Savings Deposit Insurance Fund of Turkey (SDIF) or in Turkish TASARRUF MEVDUATI SİGORTA FONU (TMSF)..."

Read more at http://www.northcyprusfreepress.com/2010/01/11/how-safe-is-your-money-in-north-cyprus-banks/

teatime


Joined: 20/10/2008
Posts: 852

Message Posted:
11/01/2010 17:45

So what happened to the 20k euros per account covered, that has been mentioned on here many times??

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
11/01/2010 17:53

It is still in place take a look at the following:-



http://www.kktcmb.trnc.net/ENGLISH/regulations/sdifl/sdifl40-01.html

teatime


Joined: 20/10/2008
Posts: 852

Message Posted:
11/01/2010 17:59

Thanks for that lovingcyprus, That put's ones mind at rest!

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
11/01/2010 19:00

50,000TL according to the source and 23,691 Euros at the moment

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
11/01/2010 19:35

lovingcyprus, I think those 2001 regulations (created after banks crashed in the TRNC and in Turkey) apply to TRNC banks but they're roughly the same as Turkish banks backed by the SDIF fund. I'm not sure where the money actually comes from in the case of TRNC banks.

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
11/01/2010 19:44

Why not bank with one of the branches of a Turkish bank like HSBC - the rates might not be so good but they are more secure.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
11/01/2010 19:57

malsancak



The 2001 regulations do indeed apply to TRNC banks as opposed to Mainland Turkish banks

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
11/01/2010 20:02

malsancak

many thanks for the information apreciated

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
11/01/2010 20:58

Investing in banks is the same as investing in anything - make sure that what you invest in higher risk you can afford to loose.



You can invest in a UK bank, some risk but no return (ok 1%), a TRNC bank with some risk (10%) or on stock markets with high risk but chance of high return or loose all.



It is no good going for a higher risk option then moaning later because the bank failed or the shares collapsed.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
11/01/2010 21:35

flightholiday, "Why not bank with one of the branches of a Turkish bank like HSBC" that was covered in the article, HSBC is a local franchise and is supported by local regulations the same as the other banks so there is no advantage in using it.

BoTanica


Joined: 22/12/2009
Posts: 714

Message Posted:
11/01/2010 23:14

HSBC in Cyprus has nothing to do with HSBC in the UK. It is a franchise type of thing.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
11/01/2010 23:19

malsancak



HSBC is not a franchise it is part of the worldwide HSBC Group coming under Turkey, if you look under Turkey you will see the Girne Branch.

Vidal


Joined: 14/05/2009
Posts: 867

Message Posted:
11/01/2010 23:25

How safe is your money in north Cyprus banks?











Safe as houses!!!!





I'm sorry, I couldn't resist...ok I'll go to my room.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
11/01/2010 23:36

lovingcyprus, try transferring money from your HSBC account in the UK and you'll be told by the bank manager just what I've told you. Also see http://www.hsbc.co.uk/1/2/franchise

Dawnie1


Joined: 27/09/2008
Posts: 217

Message Posted:
12/01/2010 10:14

Mal the link you provide shows that HSBC provide a franchise service to enable people to set up franchises of their own. It does not show that HSBC is a franchise!!!!

HSBC bought Demirbank several years ago now & I can assure you it is part of the global HSBC Group.

It is lack of knowledge in branches that lets them down but to be fair, Northern Cyprus is not listed in information readily available to branch staff, its only when you contact International Division that they can confirm the existence if the branches.

I have sent money several times from HSBC to HSBC in TRNC with no problems at all.

This is an old chestnut that keeps cropping up, HSBC TRNC is part of HSBC Group Holdings and as someone who worked for them for 30 years, I think I should know...lol

MartinM


Joined: 03/10/2009
Posts: 166

Message Posted:
12/01/2010 10:17

@ Vidal

smithy


Joined: 17/07/2008
Posts: 5301

Message Posted:
12/01/2010 10:52

very funny vidal good one ) NOW GO TO THE CORNER OF THE ROOM

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
12/01/2010 10:55

Dawnie1, you're right. I must admit that the information given by the HSBC Ramsgate bank manager was in 2002. As far as I understand it though, it still stands that HSBC north Cyprus is financially independent (possibly as a Turkish branch) and in a crisis would not be rescued by the UK parent company. It would have the same protection of all other banks on the island, I am led to believe.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
12/01/2010 11:14

Dawnie1



Your message 16 is so correct.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
12/01/2010 11:45

malsancak



HSBC it is a global company with a presence in the UK and many other countries including Turkey.



The UK part of the organisation would not step in if HSBC Bank A.Ş. went bust or any other part ot the HSBC organisation.



HSBC in the TRNC is deemed to be a Turkish Bank

Dawnie1


Joined: 27/09/2008
Posts: 217

Message Posted:
12/01/2010 11:47

Mal



Yes I believe you are correct, it would be the same protection as the other banks in TRNC. It would be treated exactly the same in the event of a crisis, however I think we can feel more safe that it is part of the worldwide group & therefore would not want to be seen as "going under" as it could have an adverse effect on the whole group worldwide. Lets not forget that HSBC was one of the banks needing no assistance from the government throughout the recent banking crisis in the UK.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
12/01/2010 12:06

the only problem is that, recently, Turkish banks have suffered few problems whereas some British banks have had serious concerns about them. You are right, however, HSBC have avoided the crisis but again it is irrelevant that the parent company is doing well as they would never support the TRNC operation if it was in trouble, I believe. That's the reasoning behind having the local operation as a separate legal entity. If it goes down with massive debts it cannot take the rest of the operation with it.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
12/01/2010 13:11

The HSBC in the TRNC is not a seperate entity it comes under HSBC Bank A.Ş

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
12/01/2010 14:16

lovingCyprus, I mean separate from the parent holding company in the UK. It is part of the Turkish operation, I believe.