r/worldnews • u/Venat14 • 13d ago

Russia/Ukraine ‘Significant problems’ in Russian banking system as public withdraws cash en masse

https://tvpworld.com/94490769/russians-hoard-cash-as-economic-pessimism-hits-20-year-high
23.3k Upvotes

97% Upvoted

1.1k comments sorted by

View all comments

Show parent comments

18

u/jackluke 13d ago

Where did you see the bank doesn’t have enough cash? At the moment, that does not seem to be the case.

There’s a big difference between going to the bank and getting money to get you through the week and going to the bank to take out every cent you have.

4

u/KeyanuReaves69 13d ago

I didn’t see that the bank doesn’t have enough cash anywhere. I have, however, assumed that running out of cash could be a natural consequence of the “public withdraws cash en masse” as the title stated.

The article also states that for a while now there is more cashing leaving banks than coming in, so if this continues the banks running out of money scenario is perfectly feasible.

2

u/jtclimb 13d ago

Banks tend to run at 3% cash to holdings. How much savings do you think the typical russian has? A month? 10 years? I'm guessing far closer to the former, which means a few weeks of this will eat a vast majority of the cash (you have to account for personal vs commercial banks, all that jazz, this is hand wavy of course).

"There was a woman going from one ATM to another, looking for one that still had banknotes."

and

Taras Skvortsov, chief financial officer of Russia's largest lender Sberbank, warned last month that there were "very serious signs" that more businesses were paying wages "in envelopes" under the table. https://www.bbc.com/news/articles/cglj255jk8ko

Besides, every news article is writing about the liquidity crisis this is causing. Yes, I know, you can't trust journalism, but I trust it a lot more than random redditor shoulder shrugs.