Are All Banks Worldwide Near Collapse>

manrow

Recently on holiday in India, and noticed television advertisements offering interest on savings better than available in the western world. How can this be did they avoid the worst of the West's antics in the last few years?

soulsaver

Well Iceland didn't, but they offer better rates than the rest of the wertern world...
Zimbabwe didn't....
Currency would be my guess? And/or growth?

Andrew64

I was in Malaysia recently and their banks were giving about 5%. I think banks in the 'developing' world were not as adventurous (LOL!) as their Western counterparts!

baby_boomer

All banks are near to collapse in the sense that they would collapse if we withdrew our savings at the same time.

That's banking! It took this crisis for more people to become aware of the reality.

nzseries1

manrow wrote: »

Are All Banks Worldwide Near Collapse>

You saw high savings rates in India, and from that you inferred that All Worldwide Banks are Near Collapse?

Sheer lunacy. Never have I heard anything so preposterous.

Sun

India has high rate of inflation - 7-10%

So, even if you get +5% on saving, value of money still drops compared to western world.

RayWolfe

SE Asia had it's banking collapse in 1997. It may have another one.

Reaper

The Asian banks did not get involved in sub-prime lending and the culture of individuals out there is save up to spend, not buy things on credit.

However they have not been immune to the global recession and Indian bank ICICI, which trades over here, looks weak. It is rated BBB- by Fitch which only just puts it above "junk" investment status.

manrow

Quite right Reaper that is the subtle difference!

sabretoothtigger

And ratings firms can be relied on for good judgement?

The iffy banks in iffy countries tend to have more capital backing is my impression precisely because they are less trusted.

Whats worse is the highly trusted AA banks like lloyds have ended up taking far greater risks then ever intended and our currency and economy is not so stable as it once was which puts us closer to indias problems then we would like

cocktail

manrow wrote: »

Recently on holiday in India, and noticed television advertisements offering interest on savings better than available in the western world. How can this be did they avoid the worst of the West's antics in the last few years?

Indian bank ICICI is the only one i know, operating here in the UK.
They do have a poor rating from Fitch, but seems to be better than many of the 'Better' UK banks that the government has had to bail out.