Kibkom North Cyprus Forum

If you have money in a trnc bank account. are you covered if the bank goes bust. if so for how much.

thickey wrote:If you have money in a trnc bank account. are you covered if the bank goes bust. if so for how much.

We were assured (sic) the TRNC Central Bank guarantees accounts to the value of 75K TL in the event of an individual bank failure here. Where it gets the money from is anybody's guess and if it would cover the many accounts involved is another question. However, it is apparently, against the law in the TRNC to either question or criticise any bank, so I shall stop here.

You might be correct about the 75 k tl but i always thought it was 20000 euro? Im nit sure as it would make morecsende to be a tl amount and maybe when th bank told me 20000 euro it was equal to 75 k tl !

Whats ciporrect is it the 75 k tl . Although intend to agree with you its probably academic ......lke they could payout .....

I am not entirely sure, but I am sure some of our more knowledgeable members will comment. TRNC banks are maybe different to other european banks.....so, maybe you really need to ask the specific question of your specific bank. Tomsteel I didn't know TRNC had a central bank... I was under the impression that it was the Turkish Central Bank, but as I understand it, there are banks here that are governed by Turkish Central Bank, and may be safer, and others which are TRNC banks, offering better rates of interest but more risky, maybe......I think anyone should check it out with their own bank, then you can assess the risk.

Hi all

I was informed by Creditwest that 20000 euros is covered by the Government scheme like the one in the UK for £85000. They advised that if you have more than 20000 euros to invest then split it into separate accounts, all under 20000 euros. This means that each account is guaranteed rather than the total of your deposits.

Lasagne

Fairies at the bottom of your garden. I don't believe one word the banks tell me here. Just the same as paying for earthquake insurance. In the event of a real earthquake, there just would not be enough money to cover peoples claims. There are enough people here who NEVER received a penny after the last mudslides a few years back. The excuses for not paying out are legion and I believe the same would go for bank collapses. Its all very well paying out relatively high interest rates on savings but when so many TRNC banks are privately owned, the chances of being recompensed more than a tiny percentage are nil. Those are my feelings and no-one has been able to convinced me otherwise, least of all a Bank Manager, try as they may.

Ive posted before about this all the banks swear this multiple segmenting of accounts works its the biggest nonsense i have heard ever. They have no shame and will say anything to get you to put more money with them . Their claim is quite frankly stupid corrupt and makes a mockery of the whole banking and financial regulation here in the trnc . Do not believe it !

The thing with the compensation schemes in the UK is that the Government can lay their hands on as much money as the bank owes so can compensate the account holders.
Have my doubts the TRNC government has that kind of money or access to it.

thickey wrote:If you have money in a trnc bank account. are you covered if the bank goes bust. if so for how much.

In a word - no.

There are various and varied promises made when opening an account but think on this. Who will you complain to when no compensation is forthcoming?

As you say Hedge-fund. If a country is and of itself bankrupt then there is no-one you can turn to. I have stopped trying to explain this to anyone who asks for my opinion. They come back with "Ah but Turkey would bail them out" How naïve can you get.?

sophie wrote: They come back with "Ah but Turkey would bail them out" How naïve can you get.?

The flaw is assuming the Turkish people will be happy when their economy is struggling to send their hard earned across the water.
Taking it a stage further it will be an even bigger ask to expect their tax money to compensate expats.
Bailing out little old Turkish pensioners who have lost their £2000 equivalent life savings is both easier to scale up and will be more popular than bailing out expats who put £50-£100k in a bank account and been living off the interest for years.
How many of us took to the streets protesting when the Lloyds names took a bath a few years back?