AS SAFE AS MONEY IN THE BANK? THINK AGAIN!

Don’t put all your eggs in one basket.

So says an adage.

I would paraphrase this and say,

Don’t put all your money in one bank.

There is also a saying,

As safe as money in the bank

and..

A Penny Saved Is A Penny Earned

Really? As we said here, Popular Wisdom is Often Plain Stupidity

How safe is it to keep money in the bank? I mean, in Nigeria. If history has taught us anything, it is that Humans hardly ever learn from history

banks

The screaming headline announces,

Skye Bank CEO resigns as CBN sack execs over capital issues

Naturally, a tsunami of this nature has people wondering about the safety of their funds in banks generally. The fear is further exacerbated when you hear comments like..

Skye Bank is thought to have an estimated non performing loan portfolio of N700 billion, much of which is due to an overexposure in the oil and gas sector

Or, a top banker saying..

Tunde Ayeni wrecked the bank. Why did he buy NITEL? He took a risk. If PDP had won, that hole would have been covered. He would have stolen us blind

Or, another saying..

Why did he buy NITEL? And bought Mainstreet for ₦ 120bn… A husk of a bank

There is a top gun in one of the biggest banks in Nigeria who suddenly resigned his appointment. We were all aghast. His reason? He couldn’t cope with the rot. He says the rot in there stank to high heavens!

How safe is your money in a Nigerian bank?

banker

Someone blithely comments,

No need panicking. Depositors funds are intact

Really?

Did we not have a government in place in Nigeria when shareholders and depositors lost billions? When banks were packing up like a pack of cards?

AllStates Trust bank, Savannah Bank, Societe Generale Bank, etc are examples where ordinary people lost hard earned money.

Then another one interjected,

Depositor funds are insured actually by NDIC

This one sent my blood boiling! and I replied,

Stop this Tales by Moonlight, Oga. Are you aware there is a ₦500k, maximum that you can he paid by NDIC if your bank runs into hot water?. What if you had ₦ 20 Million at SkyE Bank, and it goes under? What then, eh?

Lessons ….don’t keep your wealth in cash in a bank. Have your wealth held in real assets like gold and real estates.

Don’t park your money anywhere including banks. Don’t put money you cant afford to lose in a single bank and go to sleep.

You cannot really tell how badly a bank is doing while under the illusion of safety of money in the bank.

With banks making money left, right and center , you wonder why they still run into trouble from tine to time

I sort of think the world has outgrown banks.

Clearly, to live long we need to avoid banks as much as possible.

Money moves so fast it doesn’t need warehousing, or bean_counters to drool over and mismanage for us.

Leave a Reply

Your email address will not be published. Required fields are marked *