JFKvsNixon Posted November 21, 2010 Share Posted November 21, 2010 Hmmm, last time there was a run on the bank, the government had to help them out with our money. So, will this mean extra government money may be be needed to help the banks out, thus starving the public services of more money? Link to comment Share on other sites More sharing options...
I1L2T3 Posted November 21, 2010 Share Posted November 21, 2010 But it will be a victory for the protestors against all the other people who needed money that day. The banks will not suffer. If the banks have to withdraw ATM services it will have serious consequences. It will not be good for the banks. We would have to ask questions re: the liquidity of the banks. As for people who worry they won't be able to get money why don't they withdraw it on the day before? Get the whole thing kicked off a day early? Link to comment Share on other sites More sharing options...
altus Posted November 21, 2010 Share Posted November 21, 2010 If the banks have to withdraw ATM services it will have serious consequences. It will not be good for the banks. We would have to ask questions re: the liquidity of the banks. As for people needing who worry they won't be able to get money why don't they withdraw it on the day before? Get the whole thing kicked off a day early? Why would the banks have to withdraw ATM services? If the machines run out and they don't have enough in branches to fill them up they'll just let them run out of money. ATMs frequently run out of money over bank holidays - this would be no different to that. The only people this will have an effect on are people who run out of cash and have not heard of the protest. Even then, they can always pay by card and/or get some cash back in a supermarket. Link to comment Share on other sites More sharing options...
I1L2T3 Posted November 21, 2010 Share Posted November 21, 2010 Think of all the money they'll lose by not being able to charge you to withdraw your money .... Oh, but they don't charge for that anyway, do they? (Not if you use your own bank's ATMs, anyway.) They will still be able to transfer money out of accounts to pay bills. They will also be able to credit money to accounts, but if they're very busy, that may take them a few days ... which should help to solve their temporary liquidity problem. You miss the point entirely. This is a test of the liquidity of the banks. They either pass or they fail. If they have to shut down the ATM system they fail (massively) because it's a relatively crude and simple stress test of just one part of the system that the banks should be able to pass with flying colours. If they fail then the real run will start. Link to comment Share on other sites More sharing options...
I1L2T3 Posted November 21, 2010 Share Posted November 21, 2010 Why would the banks have to withdraw ATM services? If the machines run out and they don't have enough in branches to fill them up they'll just let them run out of money. ATMs frequently run out of money over bank holidays - this would be no different to that. The only people this will have an effect on are people who run out of cash and have not heard of the protest. Even then, they can always pay by card and/or get some cash back in a supermarket. Yep they might go through the day, the machines run out of cash. Could be no big deal. Or they are forced to shut the system down - that would be a big deal. Or they could be tempted to limit the cash in the machines - massive own goal. They should pass this test comfortably IMO. Other areas can be probed at later if needed. Link to comment Share on other sites More sharing options...
altus Posted November 21, 2010 Share Posted November 21, 2010 Yep they might go through the day, the machines run out of cash. Could be no big deal. Or they are forced to shut the system down - that would be a big deal. Or they could be tempted to limit the cash in the machines - massive own goal. They should pass this test comfortably IMO. Other areas can be probed at later if needed. Withdrawing all the cash from all the ATMs is not a test of liquidity though. The cash is already in liquid as it's sitting there in the machines. Not having enough cash to hand to refill the machines will disrupt the service for people not involved in the protest and the banks would prefer that to not happen but won't be the end of the world for them. It won't be the end of the world for the people affected either as they'll be able to pay by card and/or get cash back from a supermarket. People were queueing to withdraw all their money from Northern Rock because they thought they were going to lose it. That's not the case with this protest so the number of people wanting to do it will be far, far lower. Link to comment Share on other sites More sharing options...
I1L2T3 Posted November 21, 2010 Share Posted November 21, 2010 Withdrawing all the cash from all the ATMs is not a test of liquidity though. The cash is already in liquid as it's sitting there in the machines. Not having enough cash to hand to refill the machines will disrupt the service for people not involved in the protest and the banks would prefer not to happen but won't be the end of the world for them. It won't be the end of the world for the people affected either as they'll be able to pay by card and/or get cash back from a supermarket. People were queueing to withdraw all their money from Northern Rock because they thought they were going to lose it. That's not the case with this protest so the number of people wanting to do it will be far, far lower. Like I said the question is whether or not they switch the system off. If they do then questions will need to be asked. Link to comment Share on other sites More sharing options...
Andy Posted November 21, 2010 Share Posted November 21, 2010 Please remember that most overdrafts are "Repayable on demand" - so although it would be a drastic measure the banks would be entitled to cancel overdrafts immediately and ask anyone overdrawn to re-pay immediately. Equally they could cancel credit cards immediately, if needed. I'm afraid this is just a load of nonsense. The worse that will happen is a few ATMs will run out of cash. The people who need to withdraw cash will suffer, the banks won't. People who work for cash delivery companies might get a bit of overtime though Link to comment Share on other sites More sharing options...
Andy Posted November 21, 2010 Share Posted November 21, 2010 If they fail then the real run will start. Why do you think it would be fun for people to be unable to spend their hard earned wages, a couple of weeks before Christmas? Link to comment Share on other sites More sharing options...
altus Posted November 21, 2010 Share Posted November 21, 2010 Like I said the question is whether or not they switch the system off. If they do then questions will need to be asked. What do you mean by switching the system off? ATMs running out of money is not switching off the system - it's a logistics issue of making sure that there is enough cash about to repeatedly fill the ATMs for one day. If banks deem it OK for cash machines to run out of money over bank holiday weekends, they will also deem it acceptable for them to run out for ONE DAY mid week. Particularly as customers caught out will be able to still get cash from supermarkets. Link to comment Share on other sites More sharing options...
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