Warning ! Malaysian Bank May Fail

All of us are SICK worried if 2009 will be worse than 2008, and the credit crunch wave is beginning to hit many businesses and individuals in Malaysia. As an individual, I will try to help you discover how you can identify if your bank is still doing well.

The first few ones who felt the credit crunch here in Malaysia would probably be those who has hordes of bonds in foreign values. If you take a look at Malaysia's economic situation, there isn't much hype on the credit crunch, but rather physical, literal actions that businesses take when their financial margins thin out. Perhaps you were also driven up the wall, perhaps not.

Fortunately enough for us, the Malaysian government has not pushed the pre-panic button, and has laid out several words to calm our raging sanity. Our dear neighbour Singapore, were already affected much. Just recently, DBS Group; metaphorically viewed as Malaysia's Maybank, (DBS is Singapore's largest bank), has suffered a HUGE slap of 13% net profit loss over the last 9 months, cutting over 900 jobs.

Without further ado, let us tell you what are the signs of a 'perhaps' bank failure:

Heavy selling pressure to the bank share, price drop drastically from top to bottom.
Latest financial statement reveal big loss, shrinking of balance sheet.

Are your bank(s) going through a huge retrench activity or more-than-normal job layoffs?
Are they announcing a cutback on dividend cuts on shareholders?
Loan applications - Are they harder to get, or totally impossible, or stop giving out?
Are you receiving hordes of offers to do more business with the banks?
Savings account and cash deposits - Are the interest rates fluctuating too much?
Perhaps, again, you'd want to further help protect yourself in a way. The Perbadanan Insurans Deposit Malaysia (PIDM) now has full government guarantee. Whether or not this is a good thing, our economic situation lies at the hands of governmental activities which would make a huge impression and blow on 2009's economical values. Let's pray and hope that we do not repeat mistakes of the US.