I do not know why I have the feeling that sooner or later we will have our own credit crisis.
We do not have Mortgage except on a very narrow scale but we have other dead credit hell doors : The credit cards and the cars loans.
Most of the banks now in Egypt present the cars loans program and of course all of them present credit cards,they are extensively depend on their retail banking without any consideration to where this country is doing.
How many times have you been sitting in your office and you find a bank sales representative offering you a new credit card despite you already have in your wallet 3 credit cards and in the end you agree to hold his or her bank’s card after hours of debating with him or her that you do not need it ??
Have you noticed the huge increase in cars in Cairo ?? Thanks to the cars loans programs in the bank people now buy cars for them and their kids without any consideration to the future.
it is not the mistake of the banks because after all there is a need in the market and they want to fulfill it.
It is the mistake of the people who do not want to understand that they do not need too many credit cards and misuse them as usual.It is the mistake of the people who do not want to understand that their salaries are still the same where as the prices are escalating.
I fear on our banking system for this. Our banks think that they are so clever to get away from credit troubles ,but let’s remember banking giants in the states made this deadly mistake also.
One day people won’t be able to pay their credit cards debts and their car loans and they will be too many that the banks won’t to get back its right.
People should wake up and start thinking about the future for once of their lives and the banks should stop depending on the retail banking only and return back again to finance development projects in this country .
Actually what I hear that we're somehow far from an upcoming credit crisis because the value of deposits in banks is double the value of loans. Which means there's enough cash so far in our banks to avoid near time crisis. But you have a point that banks should also pull other strings to get more cash flow other than loans.
ReplyDeletereally?
ReplyDeletewe have more cash than loans?
tb.. how about the stolen billions out side the country !
@Gee , Blue is right , also do not forget my dear friend with escalating prices more and more people use their deposits
ReplyDeleteThe Central bank of Egypt is doing the best it can for sure to avoid a catastrophe not a crisis in Egypt because in the end the regime can't handle a revolution ,it is like the last straw
@Blue, do not remind me with those billions , I always had a hope to restore them one day but God knows with all those banks abroad collapsing one after another what would happen to them :(