Banks don’t do a good job of storing money.
In fact, they don’t even like stashing it at all.
As much as $400 billion is stashed away in private bank accounts in the U.S., and even more in overseas, according to a new study.
The report from Bankrate, a financial research firm, says that $400bn is a staggering amount of money that would go into a bank’s balance sheet at any given time.
“Banks’ inability to effectively manage money at all is a real problem for them, and it is even worse in this environment,” said Bankrate’s chief economist Daniel Gross.
“If banks want to keep their clients safe, they need to get their money out of the system as quickly as possible.”
Banks don’t really have a clear-cut way to handle the money stashed abroad.
Some of their customers don’t trust banks, for example, or they don�t want to use their funds at all, according the Bankrate study.
So many people are stashing their money in the private banking system that the U!
has about 10 times as many private banks as the rest of the world combined.
So much of the money in private banking accounts is hidden in accounts held in other countries, that banks can’t just put it in one place and send it to their U.K.-based clients.
And when it comes to stashing money overseas, banks aren’t sure what to do.
“While the banking industry has made great strides to create a safe and secure environment, there are many ways to store money, and most banks don�ts understand the full scope of the risks and risks of the current situation,” said Gross.
He also says banks are under pressure to find ways to grow their overseas business, because the U is losing money.
So far, U. S. private banks have been losing about $5 billion per quarter, according in a report from the Federal Reserve Bank of New York.
“Banking remains a key source of private-sector jobs in the United States, but there is an increasing number of small and medium-sized enterprises (SMEs) that have stopped investing in U. States, and they are leaving the U,” Gross said.
“This is not a good sign for U. America, and a huge concern for the U.”
Banking and the government have both responded to the problem by offering more incentives for banks to hold money in their accounts abroad, but the problem persists.
For example, the U government announced a $50 million tax credit to banks to help with money laundering and money laundering activities.
But banks say the tax credit only applies to their accounts in their home countries.
“As more countries move to open up their banks to more foreign customers, banks and the U will have to continue to grapple with the complexity of managing funds outside of the U., and this will only become more difficult as the number of transactions becomes more complicated and as financial flows increase,” said the Bank of America study.