Wednesday, June 1, 2011

What are the signs of bank failure?

Swallow in flight clinging to the earth - to be the rain. And if the bank is delaying your payment - to be "storm." Problems in computational operations show a poor state of health of the bank and possible bankruptcy. What other "signs" can judge the health of a bank? Suspect that something was wrong, read the newspaper. On the troubled banks before the bankruptcy appear negative materials. If doubts are growing, and worth visiting the website of the Central Bank. There, for each credit institution can be found statement. Bad For example, if a bank got more credit than he gave. By law, but all this at a glance citizen. Here are the highlights of bankruptcy law: • the bank in the last 6 months of not fulfilling the demands of creditors on monetary obligations • allows reduction of capital by more than 20% of its maximum size in the last 12 months • Reducing capital for the month less than the amount • capital violates the norms of the Central Bank requirements for bankruptcy, but these signs and not enough for a bank failure. First, the credit institutions the Central Bank shall revoke the license. The court may file for bankruptcy if the bank comes under one of these conditions: • the requirements for a bank account not less than 1000 SMIC • Assets of the bank is less than all of its obligations

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