For banks, trust of the people is essential as it depends on cash deposited by people. In this case, what happens when any bank loses confidence of the people or its confidence is shaken? Naturally, when a bank loses confidence, customers will rush to withdraw their deposits, and the bank will be unable to implement their requests because the liquidity is invested, which may increase the panic of depositors, and this leads to the possibility of a complete collapse of the bank within a few days.
Last week, second edition of the conference of financial sector took place in Riyadh, Saudi Arabia, following crisis in American Silicon Valley Bank and few more financial institutions. This has already led to public panic in the United States, whereas media reports are claiming that many more banks in the US shall face similar consequence of Silicon Valley Bank within the next few months.
Economic pundits are even expressing concern about financial bankruptcy of Credit Suisse and few more banks and financial institutions in Europe.
Meanwhile, Saudi financial banks have assured their customers that none of the things such as Silicon Valley Bank or any other American or European banks will occur in the Kingdom.
Similarly, financial institutions and banks in the GCC nations are also not having minimal possibility of facing any disaster. But here is bad news for those who have been considering American and European banks as extremely safe for the declared or secret deposits. As the European and American economy is heading towards severe crisis, it is possible that a large number of Western financial institutions may steal depositor’s cash and gold without notifying and use it in maintaining their existence. There is also strong possibility that a number of Western governments may force their financial institutions in providing cash for save the country from possible bankruptcy in the very near future. Western governments may even confiscate cash deposits and gold of foreign nationals with Western banks.
Under such circumstance, those who have deposited billions of dollars in cash and kept gold worth billions of dollars with Western banks need to rush and withdraw everything immediately and shift those cash and valuables to any of the Asian nations. They need to know, an acute financial disaster is approaching the Western nations, including those financial institutions.
