QUOTE(wu ming @ Jul 31 2012, 02:34 AM)
I suspect Bank Rakyat just lost RM75mil after it bought fake gold.
Wat is 75 million to a bank. Read the paper today BR record profit.
Added on July 31, 2012, 7:43 amQUOTE(cherroy @ Jul 30 2012, 10:32 PM)
Then you need to understand how bank operate.
For simple example.
A bank has 1 billion of own capital, so it can lend out 970 million (if it is a 3% SRR) as loan,
but on the other hand, bank can take in deposit of 10 billion and lend out 9.7 billion as well.
So if more than 10% of the depositors withdraw deposit suddenly (a bank run), means bank need to come out with 1 billion cash to pay back the depositor, 1 billion means entire bank own capital.
What if 20% of depositors suddenly want to withdraw in full?
Those loan made cannot be recalled instantly. Housing loan take decade to be pay off once lend out. Same with car loan, and many other loan.
Worst still if those housing loan are underwatered, aka real estate value has plunged severely after the loan being made.
For eg. bank lend out 500k housing loan for a 500k property previously, now the property only worth 300k in the market.
So bank needs to access to the interbank market to borrow money from other bank to fund it, or central bank. If both channel is not accessible due to whatever reason (like global financial crisis time, whereby inter-bank lending became stand-still due to fear counter-party bank collapse/default), then bank may have hard time to survive.
That's why regulators in most countries nowadays want banks to have strong tier 1 capital as required by Basel accord, aka means leverage level cannot be too high in the future.
Yup, totally agree. There is a few financial tools which are used quite often,,like interbank lending. However when there is a major run, the government has to step in maybe by capital injection. It would be better to ensure that banks are not over exposed to a certain sector only. I may be wrong but I do think that even PIDM reinsured our deposit internationally. Thats why I am extremely glad that our bankgovernor has taken proactive steps recently eventhough its not popular. Its very difficult to balance regulation as it may affect economic growrh.
Added on July 31, 2012, 8:06 amQUOTE(gsc @ Jul 30 2012, 10:09 PM)
too bad, no data for 55-60 range. however with the assumption older age will pass away earlier, it is safe to assume that the mortality rate is even higher than 37% for 55-60 range. In that case government shouldn't raise the age limit to 60 yrs old for full withdrawal.
The mortality is strangely higher when the average life span of Malaysian is male 72 and female 76.
If your company mortality is v very high for those under 50, it sounds like a dangerous occupation?
I actual fact , it is group separately, just to make it easier I group it together. Just on Saturday, one of my friend died of heart attack while playing less strenous game,and just 50.
In my organisation, even general workers has to attend at least 5 meetings a month,if higher management ?. This is due to the top management wanting to comply with whatever certification that is available domestic n international.
FD rates in my opinion wont go down much nowadays maybe 25 basis point or up.
This post has been edited by magika: Jul 31 2012, 08:06 AM 
Jul 30 2012, 10:34 PM
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