Is my Money Safe in the Bank?

Should I be worried about my bank account?

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We are always worried about money and our financial future. A common concern is whether the bank is a safe place for one’s savings. The short answer is: yes, your money is safe as long as the rules that govern the banks, which are determined by the Central Bank, are in effect.

 

The banks in Egypt are supervised by the Central Bank of Egypt, which has put certain laws in effect to protect both banks and customers. Each bank is expected to abide by those laws or suffer penalties.

 

Examples of What the Central Bank Supervises:

 

  • The bank has enough capital to cover its own transactions.
  • The bank is abiding by the maximum limit to its debt and has enough guarantees to cover it.
  • Customer data, and what the bank is allowed to disclose.
  • The bank’s regulations concerning opening accounts and all transactions.
  • The bank’s terms and conditions concerning offering credit and loans.

 

Moreover, the Central Bank has a warning system in place so that it can realize any problem that might occur within the banking system. In addition, each bank is supposed to insure most of its transactions so that if a problem occurs, the insurance is used to cover the related transactions.

 

The banks in Egypt are supervised by the Central Bank of Egypt, which has put certain laws in effect to protect both banks and customers. Each bank is expected to abide by those laws or suffer penalties.

 

Can the banking system collapse suddenly?

 

In theory, it is possible, but there are always indicators. If these indicators are ignored, then the banking system collapses along with the financial system. This is what happened in 2008 in the USA. At the time, the banks kept approving mortgages without enough guarantees or insurance. So, when most of the loans defaulted, the banks were unable to cover all of those defaulted loans. That is why the government had to step in and bail out the banks so that they don’t go bankrupt.

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