Major warns banks that savers’ deposits can be “volatile”. Especially since many people nowadays transact digitally and it is relatively easy to deposit their savings elsewhere. Banks need this money to finance other activities.
“The desire for better returns on savings could tempt savers to switch to other (foreign) banks that offer higher interest rates on savings,” says Major.
He also sees other risks for banks. More and more companies are going bankrupt. They often cannot repay their loans, causing banks to incur losses. High interest rates also play a role, because companies have recently taken out loans at higher interest rates than they did a few years ago. The same applies to families.
Despite the risks, according to DNB, the banks are in a good financial position, as evidenced by the recent rise in profits. This way they earn more from payment transactions, work more efficiently and earn well from the difference between the interest they give and the interest they receive.
