Quote:
Originally Posted by Konda
The Bank maintains a strong balance sheet with total equity including paid up capital and accumulated retained earnings in excess of US$26 million, a most recent reported regulatory capital ratio of 26.92%, and statutory liquidity ratio of 74.59%, such ratios significantly exceeding all statutory capital adequacy and liquid asset requirements. The liquidity challenges the Bank currently faces is truly a short-term one. As it progresses through this process, the Bank is confident that all its depositors, cardholders and creditors will be kept whole.
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I'm no financial wiz but to me this sounds like they're operating in a fractional capacity, with a good portion of customer's funds tied up in profitable investments rather than just stored as 100% available cash. That's how a "Savings" bank can go broke.