Discussion in 'Expat Life' started by KJP, Apr 21, 2005.

  1. KJP

    KJP Well-Known Member

    just heard through the grapevine, internally. Take it for what ever you feel its worth, but e-banka is in serious trouble and looking for insolvency. Our firm is closing all accounts with them, as am I. I don't plan on ending up like those that had accounts with credit union...they got little to nothing after that bank went belly up.

    Its not been announced, but if my higher-ups close things, and they r czech, I can assure you there is a good reason why. (that coupled with the fact that they r well overpriced). looking at the public records of pro-forma will tell you nothing, but you already know that, right? :lol:

    really though, for the few kc it costs, I am bagging them and feel it proper to tell expats what Ive heard...good luck
  2. uuspoiss

    uuspoiss Well-Known Member

    This is how banks die. Somebody starts a rumour, it spreads, everybody takes their funds out and that's it. It probably has little to do with where the rumour started from or whether there's any truth in it.
  3. Jaya

    Jaya New Member

    right. that's how competing banks try to kill each other if other things like better quality services, and more comprehensive products don't do the job of outsmarting competition. just wondering. can the grapevine substantiate his/her claim? what 's causing the major trouble? a lot of nonperforming assets, etc?
  4. Malnik

    Malnik Well-Known Member

    Hypothetical question!!

    If your mother had her lifes savings in a bank and a rumour came that they would fold and everyone would loose money......who would leave it there on the basis that its probably just the competition and its probably untrue? If it ended up being true she would have nothing and have to move in with you OR if she leaves it there, on your recommendation, she gets well....nothing really for being a good loyal customer.

    Just wondered.........
  5. uuspoiss

    uuspoiss Well-Known Member

    Very good point. Sure it would be a good idea to move the money, even if it's just a rumour. Everybody would, and me too. And that's exactly what makes these rumours so dangerous for the banks.
  6. Malnik

    Malnik Well-Known Member

    I think you still owe me a beer......

    (I knew the bit about your mother moving in would get ya!!)

  7. uuspoiss

    uuspoiss Well-Known Member

    Have you heard of the problem called the diner's dilemma? The point is that you're in a situation where you go out for dinner with your friends and at the end the bill is expected to be split equally. Now, there are cheaper and more expensive things to order. If everyone stayed within reason, you might all have a nice night and nobody has to pay too much. However, if you order something cheaper and everyone else orders the expensive stuff, you pay more for your share than it's worth. But at the same time, if you order the expensive stuff and everyone else gets something cheaper, you'd be getting a nice meal and pay much less than it's worth. What do you do?

    The bank thing is basically the same kind of social dilemma. If you want to win from the situation (i.e. not to lose your money), you'll be among the first to cash out your account. If enough people think the same way, the bank will at some point go down and those who were not quick enough lose. If everybody were to restrain themselves, there'd be a good chance that everyone would "win". The same thing goes for eg environmental protection (recycling, using public transport etc) and many other things. It comes down to personal gain or comfort versus the greater good.

    Just something to think about. I know there's no solution:)
  8. sussy

    sussy Active Member

    I am quite concerned about this thread regarding E-banka. I am taking a CELTA course in Prague this summer. I am paying for the course with an International Bank transfer to the school's account at E-banka. I am worried that if the bank goes under, I will lose my money. Has anyone read any solid information on this bank closing? (And perhaps can include a link). Should I contact the school regarding this? I don't want to spread these rumors any futher if they are untrue. Please help!
  9. uuspoiss

    uuspoiss Well-Known Member

    You might want to contact the school and find out if there are any alternative means of payment (cheques, cash straight at the office etc).
  10. Malnik

    Malnik Well-Known Member

    Ok uusopois........... we can make it a cheap beer!

  11. Malnik

    Malnik Well-Known Member

    Sussy I wouldn't worry. As long as your bank has the proof they sent it to the schools bank, and to the correct account number as far as you would be concerned, they have the money. If the bank did go under after the money was in the schools account, its not your problem, its the schools.
  12. sussy

    sussy Active Member

    Yeah I've already asked about alternative methods of payment and apparently this is the only method they accept.

    Malnik, thanks for your reply. I figured that if the bank went under, then it would be the school's loss rather than mine because it would have been officially their money, not mine. I just needed some reassurance, I guess.

    I suppose the only thing to worry about is whether the school would still provide the course if they lose all their money. If not, how would they refund me my money?
  13. crossczech

    crossczech Active Member

    just my $0.02 on this - eBanka belongs to the largest czech financial group, therefore i consider the speculations about it going bancrupt just as a speculations. they appear on regular basis.

    on the other hand, they really are overpriced. but i like the internet interface :-]

    (as for the background: eBanka belongs to Ceska pojistovna [Czech Insurance comp.], largest insurance company in czech rep., which itself is a part of PPF holding. these guys just sold the biggest comercial TV (NOVA) to CME, not really for pocket money, so thoughts about insolvency... i mean we all know that nothing is impossible, but...)
  14. szarkafarka

    szarkafarka Well-Known Member

    more http://www.cnb.cz/en/bd_postaveni_sub08.php
  15. KJP

    KJP Well-Known Member

    The diner's dilemma analogy should be posed to those that banked with Credit Union, of which, only 5 % were able to get their money out in time. Banks come and go here. For this to happen, it takes months, sometimes years, there are freezes and assets to deal with.

    If a rumour from one individual can bring down a financial institution, how stable were they to begin with? A woman can bite into a human finger at wendys and still the company laughs, pays off the woman( although she was found to have lied) and goes on...no one individual saying something can close a bank. Your onto the blogging dis the company scenario there. Since posted, the so called rumour is proving to have been good advice given. If you read the financial times here, you would see that others are also looking closely at this bank with great worry.

    Tranferring funds to a more stable bank is not bad advice for companies. Ceska Sporitelna and e-banka are the same institution, so if concerned, use one of the others...if not, just dont heed the advice :}

    ALL banks are online now crossczech...I mention that because you are right, they are outrageously overpriced, enough to have priced themselves out of the market and appeal only to those that dont know that all banks have english speakers and online capabilities...

    The Deposit Insurance fund failed thousands of czechs that lost their life savings with credit union...it is only a buffer...

    update: guess its not just a rumor: the worst performing bank in the country, sounds like the beginning to the end: http://www.novinky.cz/05/61/87.html

    do you think the paper started a rumor? :}
  16. luck of the irish

    luck of the irish New Member

    i am also quite concerned. does anybody have a further update on this thread is there any truth in it.


  17. cecco angiolieri

    cecco angiolieri Well-Known Member

    e-banka is controlled by Česká pojišťovna ... an insurance company....... i think there are few possibilities it's bankrupting..... however chi vivra' vedra'!

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