TSA is not the problem.....
Banks are sacking because no one is borrowing, thus interest income is down.
Banks make money in 2 ways
1. Interest income from loans
2. Fee income from things like ATM charge
2. Fee income from things like ATM charge
So you have an economy where GDP has slowed down, exports and imports have fallen , and FDIs have fallen. So who is borrowing? Only the Government......
Only the government is borrowing with a rock solid guarantee to pay back, so funds have flowed to Government securities like Treasury Bills and Bonds....hence you see the "idle cash" siting around....doing nothing...waiting for the Government to borrow it...
The irony of it, billions in "idle" cash for government, no cash for SMEs
fix this....
No comments:
Post a Comment