Dec

6

World Bank warns of possible Gaza bank collapse

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The World Bank has stated that Israel’s tightened blockade of Hamas-run Gaza had created cash shortages that could lead to the collapse of its banks. Most bank branches across the Gaza Strip have been shut since last week for insufficient funds to operate normally. Israel has stiffened Gaza border closures in the past month as cross-border violence rose, choking off cash supplies.

At this rate the liquidity crisis could lead to the collapse of the commercial banking system in Gaza warned reports and this could also entail serious humanitarian implications. Israel has been urged to move swiftly to restore cash liquidity in Gaza bank branches before the three-day Muslim Eid al-Adha feast that begins on Monday.

Dec

4

Asian shares fall; central banks to slice rates

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Asian shares fell recently with more bad news expected for the global economy. As dollar and yen steadies its stand, central banks in the UK and Europe are also cutting down their interest rates; possibly the lowest say experts. An outbreak of government measures in recent months is also aiming at stabilizing financial markets with investor weariness and predicted losses loom large.

Though it may seem that the Japanese may be diving deeper, there are but a few countries that may be sparing fewer corners in the latest news regarding the global economic downturn. Central banks on the other hand are responding by cutting their rates aggressively. The European Central Bank and the Bank of England are expected to join countries such as Thailand and New Zealand in slashing borrowing costs. Furthermore policy makers are taking additional steps to stabilize their financial sectors. South Korea and China have said to pump more funds into their financial system for ensuring additional liquidity.

Oct

6

Germany Vows to Back Private Bank Accounts

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Chancellor Angela Merkel sought to calm depositors’ fears by announcing that Germany would guarantee all private bank accounts. The assurance came in the wake of a deepening credit crisis in Europe as many banks and financial institutions teeter on the brink of collapse brought on by the US market meltdown.

The German Chancellor had been to Paris to attend an emergency meet of European leaders concerned at the worsening situation of credit market in the continent. A day after returning from the meet, Merkel addressed a hastily-arranged press conference in which she reassured depositors that all private bank accounts would be guaranteed by the government. The announcement came in the wake of renewed attempts by government officials to rescue a blue-chip lender after its initial bail-out plan failed.

The German government has been shaken by the collapse of a $50 billion plan to salvage Hypo Real Estate, a major commercial property financier after its liabilities were discovered to be worse than initial estimates. The government has now reached an agreement with private lenders to raise $63 billion for rescuing the beleaguered lender. According to the deal the government will come up with $37 billion while the rest of the bail-out amount would be pooled in by private bankers.

Jul

27

US Banks busting like never before

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The trends of US banks busting continues. By Friday evening two more small western banks are closed on Friday by Federal Regulators which increase the number of failed Western Banks to seven. According to the Federal Deposit & Insurance Corporation two Banks will have to transfer their deposits and some of the assets to Mutual of Omaha Bank.

The Banks which are to be closed are owned by the National Bank Holding Co. of Scottsdale and Arizona. On Friday the office of the Comptroller of the Currency said that the Banks were under capitalized and hence has to be closed.

It is expected that the bank failure will likely to increase as foreclosures rise and home sales lose.

Chairman of FDIC state that the Federal Govt. may offer the share in low prices to the public for the payment of comparatively higher prices for the IndyMac’s assets which was closed earlier by regulators.

Consumers are now concerned about their deposits and are trying hard to withdraw their funds in the past week. FDIC ensures the customers of the First National Bank of Nevada and First Heritage Bank, that there money and deposits are safe and accessible and there would not be any loss to their money, as account holders would be able to obtain funds over the weekend from cash machines.