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Why you should be careful with banks now: the growth of toxic debts and the risk of a financial crisis

As I warned you before, be very careful with banks right now. Especially when you carry your money there and keep it there.

Non-refundable debts of enterprises and constant re-crediting with the build-up of current credit lines secured by assets with an "air" value (which does not correspond to the real losses of previous years) in recent years have generated huge amounts of non-refundable debts of the real sector, the so-called toxic assets.

That is, in other words, with your money, as well as the money of the Central Bank/NBU received in exchange for government bonds (essentially printed), commercial banks are successfully loans, I can say with confidence, the unprofitable economy, especially in recent years.

If liquidity problems suddenly arise today, banks simply will not have anything with which to instantly pay off all deposits, since their assets are not in accounts in the form of money, but are placed in the economy, and a significant part of them may turn out to be non-refundable. Well, or a refund only in the form of bricks, felt boots, or something "very necessary", which enterprises have plenty of in their warehouses and in addition at their list price (not market value).

So, if not the bankruptcy of banks, then another batch of injections of printed money through government papers (according to the classics) to solve a sudden problem. But given that inflation is not actually decreasing, it is unlikely that the system will do this. Or some "interesting" feint, which will certainly not be in favor of the latter.

автор - Михаленко Р.
M R. Автор - kaktotak.by Specialization: financial and economic design - modeling of business, investment projects of the real sector, analysis and evaluation of efficiency, optimization of the management decision system.

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