Can banks do this?

[waterwonder]

Evening,

I had cause to talk to my bank manager today which gave rise to her saying something along the lines of "we don't make any money out of personal banking e.g. current accounts. As you have instant access to your money we can't touch it i.e. we can't play on the money markets etc etc."

I was surprised and explained that i understood her logic but i was under the impression that when viewed as a collective the bank could be fairly sure all its customer wouldn't empty their current accounts so were allowed to 'play'/lend a set % of all deposited funds.

We reached a bit of stale mate at this point and moved back to the matter in hand.

However it has left me wondering - specifically with reference to current accounts so who is correct? I thought this was the whole point when Northern Rock started going south or are the rules different for saving accounts and current accounts?

Thanks

[GTIR]

So arguing with your bank manager about a trivial matter before "the task in hand" is a good idea?

Was she fit?

[waterwonder]

GTIR said:

So arguing with your bank manager about a trivial matter before "the task in hand" is a good idea?

Was she fit?

It was good natured. Well the conversation was via phone so you know what they say..... "Fit on the phone, add two stone".

[geeteeaye]

Cobblers, as if they actually take the money from your account and invest it somewhere else, hurriedly returning it should they notice you on CCTV at an ATM or coming into branch

[GTIR]

waterwonder said:

GTIR said:

So arguing with your bank manager about a trivial matter before "the task in hand" is a good idea?

Was she fit?

It was good natured. Well the conversation was via phone so you know what they say..... "Fit on the phone, add two stone".

Flirting with your bank manager!

[Sunglasses Ron]

geeteeaye said:

Cobblers, as if they actually take the money from your account and invest it somewhere else, hurriedly returning it should they notice you on CCTV at an ATM or coming into branch

[waterwonder]

Sunglasses Ron said:

geeteeaye said:

Cobblers, as if they actually take the money from your account and invest it somewhere else, hurriedly returning it should they notice you on CCTV at an ATM or coming into branch

Now I feel thick..... I've read this twice and can't tell who you are saying is correct.

[Night Runner]

Check out Basel II/III

[ringram]

They lend it out...
Thats why bank runs can wipe a bank out.

[grumpyscot]

Methinks you bank manager needs retraining on the principles of banking. Wasn't the Halifax by any chance?

[waterwonder]

Thanks, As I thought.

I understand/know the basic concept of banking and capital ratios etc. I just gave her too much credit in thinking maybe that the rules specifically with regards to current accounts had been modified.

It would appear as I suspected she was spouting rubbish.

[ringram]

She just needs a jolly spanking

[skeeterm5]

With bank managers like that it is little wonder the state they got into

S

[R1 Loon]

skeeterm5 said:

With bank managers like that it is little wonder the state they got into

S

That makes a lot of sense

It's like complaining that one Dealer Principal is the reason that Chrysler make st cars.

[Beardy10]

Suggest you remind her that by having a current account you are lending the bank money for FREE in return for some very basic services......they of course charge as soon as it's anything vaguely complicated.

[fergywales]

R1 Loon said:

skeeterm5 said:

With bank managers like that it is little wonder the state they got into

S

That makes a lot of sense

It's like complaining that one Dealer Principal is the reason that Chrysler make st cars.

You would expect someone working in a retail banking environment with a high street bank would have a basic grasp on capital reserves and the use of deposited funds.

I would have put the phone down have told her that she is needed back in the kitchen had I been a party in the OPs conversation. Terrifying that she has risen to that level without a basic understanding of the industry she works in.

[Pothole]

fergywales said:

R1 Loon said:

skeeterm5 said:

With bank managers like that it is little wonder the state they got into

S

That makes a lot of sense

It's like complaining that one Dealer Principal is the reason that Chrysler make st cars.

You would expect someone working in a retail banking environment with a high street bank would have a basic grasp on capital reserves and the use of deposited funds.

I would have put the phone down have told her that she is needed back in the kitchen had I been a party in the OPs conversation. Terrifying that she has risen to that level without a basic understanding of the industry she works in.

I suspect you may mean 'having told her'. Terrifying that you still can't write coherent English at your age and that you would spout such misogynistic bks in public in the 21st century.

[R1 Loon]

fergywales said:

You would expect someone working in a retail banking environment with a high street bank would have a basic grasp on capital reserves and the use of deposited funds.

I would have put the phone down have told her that she is needed back in the kitchen had I been a party in the OPs conversation. Terrifying that she has risen to that level without a basic understanding of the industry she works in.

Do you hve any grasp at all of the way High St Banks operate their retail operations?. They have grading systems on the branches and may of the smaller ones are run by a junior graded staff, as all decisions of note are made by centralised computer systems. This is fundamentaally different to the way they operate their investmant arm.

You are suggesting she should grasp aspects that are both way beyond her pay grade and also irrelevant to her job. Do you expect the technicians at your local dealer to be able to produce the business's balance sheets?

[fergywales]

Pothole said:

suspect you may mean 'having told her'. Terrifying that you still can't write coherent English at your age and that you would spout such misogynistic bks in public in the 21st century.

Thanks for the correction I will blame the couple of beers in the sun this afternoon for my heinous crime, at 27 I should know better.

However, if you cannot spot a tongue-in-cheek comment (one that is perpetuated on PH almost everyday) then I suggest you are another in line for a sense of humour transplant round these parts.

[R1 Loon]

fergywales said:

Thanks for the correction I will blame the couple of beers in the sun this afternoon for my heinous crime, at 27 I should know better.

However, if you cannot spot a tongue-in-cheek comment (one that is perpetuated on PH almost everyday) then I suggest you are another in line for a sense of humour transplant round these parts.

If that bit's true, then my post makes me look like a complete cock (nothing unusual there some may say)