In this recent economy we have witnessed some hardships financially and many other aspects now coming to say there is no money in the bank how possible is that can you imagine saying the river has no water? We are in the new year now huge sum of money have been signed by the government for projects but in a very short time they suddenly come out to say the country is running out of funds the country needs to borrow money from other countries the money signed in your own country where are they what is the duty of the bank in your country imagine a bank giving you the maximum amount you as a the account owner can withdraw from your own account sometimes I just feel like the bank isn't a safe place any more.
Come to think of it what if someone has a very serious score to settle for example someone who has health issue and needs money urgently then you go to the bank and they tell you there is no money in the bank for now so where does the bank want people to save their money if the bank at some times can be this disappointing should we go back to the system as at the old days where you bury your money or put them in your ceiling for safety please it's no joke anymore banks should try to be reliable as to gain trust from customers because many people are not comfortable with this system
A bank doesn't equal a bank in every country. We need to distinguishes them to understand the system. There are three types of banks, commercial banks than engage in savings, commercial banks that are investment banks and federal banks. Out of those three only the central banks are government owned and can print money freely. The commercial banks can't print money, they are restricted to the loans they can take at the central bank, the savings they get from customers and the returns they make. In some countries are savings and investment banks separated, to give more security for the average saver. The bank will collect fees on their bank accounts and give out loans themselves to customers to make a profit. It's the difference between the savings rate and the loan rate that makes the return of the bank.