neerajchauhan
Neeraj K Chauhan
The year 2009 has the dubious distinction of witnessing the most number of banks go bust due to Financial crisis. In the first 10 months in 2009, 115 banks in the US have gone down, And in India 19 cooperative banks were closed down in 2009. Thanks to two factors, first, the recession that resulted in increasing unemployment rates and subsequent loan defaults and second, mismanagement have forced the banks in the US and around the world to close down operations.
But what happens to the depositors of these banks in such a scenario ? Do they lose their entire money ? Is there any system in place that safeguards their deposits in these troubled banks ?
Deposit insurance is a system that is in place in many countries including India that protect bank depositors, in full or in part, when banks collapse and are unable to pay back the depositors their deposit money.
It is basically a safety system that serves the twin purpose of assuring the depositors that their money is safe when banks default and save the banks from getting closed down abruptly and trigger an economic recession.
what do you say on it
:SugarwareZ-094:
But what happens to the depositors of these banks in such a scenario ? Do they lose their entire money ? Is there any system in place that safeguards their deposits in these troubled banks ?
Deposit insurance is a system that is in place in many countries including India that protect bank depositors, in full or in part, when banks collapse and are unable to pay back the depositors their deposit money.
It is basically a safety system that serves the twin purpose of assuring the depositors that their money is safe when banks default and save the banks from getting closed down abruptly and trigger an economic recession.
what do you say on it
:SugarwareZ-094: