Bank Ratings and Bank Deposits

R

Rogeyspoint

Registered User
Messages
2
Hi,

Do we need to be concerned about one's bank accounts especially for people with a large of savings in one bank. I see that Fitch Ratings has lowered their ratings on AIB & BOI this week. Is this pandemic going to be as damaging as the financial crash in 2008?
 
Yes.

It is wrong to consider deposits safe.

They might be less volatile than equities, but they are not safe.

There are two risks
Default as you point out
But there could be massive inflation which is probably a bigger risk.

Brendan
 
Thanks Brendan. Would it be better now for people to spread the risk among banks with the bank guarantee of €100k?
 
Last edited:
Surly the Government guarantee up to 100k cover most peoples risk... granted that doesnt solve the inflation risk issue but at least your deposit is full covered by government ... and well if the government goes bankrupt them we're all doomed anyway.

Good point Brendan , will all this money printing by ECB / FED / etc lead to inflation ?
 
Codogly said:
Surly the Government guarantee up to 100k cover most peoples risk...
Click to expand...

The government which had €200 billion of debt a couple of months ago and which will have €230 billion by the year end?

I would not rely on it. I am not expecting the government to go bust but it is a risk.

Brendan
 
True the governments position is not exactly AAA ...my point is ; if you live in. Country where the government goes bust then regardless of how you’ve stored your money ( cash / assets / equity / property ) then that government will have to seek to tax any and all of those assets in an attempt to re-establish the countries finances. At times like these where it’s very difficult to see how global economics and domestic economics are headed cash on deposit seems a flexible option ...or is mortgage free a better plan ??? ...
 
You must log in or register to reply here.
Back
Top