A weekly section discussing how general events can influence the future of cryptocurrency sector
Russian Bank Suspends Money Withdrawal Process
The growing financial epidemic of Russian banking system further intensified last week when a local bank – SB Bank of Russia – stopped cash withdrawal process, barring customers from obtaining their own money. The Russian Central Bank is now deciding whether to revoke the license or create a rescue plan for SB Bank.
Austria’s Third Largest Bank Suffers Free Fall
The third largest bank in Austria is scaring investors. Following the decision of the National Bank of Switzerland to eliminate parity with the Euro, the event has brought have revived concerns for Raiffeisen Bank mortgages denominated in Swiss francs, which has resulted in the collapse of the bank bonds (have fallen from more than 95 c to 65 c during the second half of January).
UK: Falling Oil Price Cause Economy Billions
British banks, including Royal Bank of Scotland and Barclays, are on the verge of losing billions after a considerable increase in loans garbage to the oil industry. According to Chirantan Barua, Bernstein Research Analyst, it is likely that a long period of cheap oil caused widespread defaults. Now the combined losses of Barclays, RBS, HSBC and Standard Chartered would amount to US $3400 million if the drop doesn’t come to halt itself.
Singapore Dollar Weakened
After relaxing its monetary policy by manipulating the exchange rate, the monetary authorities of Singapore ended up weakening the Singapore Dollar against the US Dollar. The SGD has now dropped to a level not seen since 2010. In this way, the country joins the world’s major central banks in their effort to “stimulate the growth of the economy”.