Debtfree Issue 202303 - DB SE

DEBT REVIEW AND YOUR CREDIT SCORE
AS SAFE AS A
SWISS BANK
Recent years have shown that, like any business, banks
can fail. Bankers are some of the smartest people in
dealing with money and investing money but even
they are effected by what is happening around the
world. The world is an unstable and complicated place.
If someone in China gets flu, it can cause the world to go into
lockdown for years. We now have massive and destructive storms
and weird fire tornadoes and that’s before you consider the impact of
wars and climate migration.
Things like the creation of cryptocurrency and even digital banking
have had massive impacts on traditional banking and the profits
banks can make. A shrinking base of new clients, new investors and
a drought of people with money to deposit is putting banks under
pressure. When government agencies like the US Fed or SA Reserve
Bank put up the Repo Rate, this makes it even more expensive for
banks to borrow money or make money on existing investments.
Even the failure of other banks like SVB or Credit Suisse or when
bond holders don’t get paid out when things go wrong means that it
influence other banks to borrow money or insure their money. That in
turn puts all banks under strain, and makes it harder for them to make
a profit.