Today we are talking about banking secrets. The institutions that protect our money and all the people and mechanisms that support them know something you do not. Yes, this is the banking industry we are talking about and we have nothing more than surprising facts to share with you.
The first form of the bank was established in Syria around 2000 BC as traders providing grain loans to farmers and traders. Historians place the key point of the development of the modern banking system in medieval Spain. Soon, it gradually spread throughout the Holy Roman Empire and to the northern regions of Europe in the 15th and 16th centuries.
With the rise and development of telecommunications, the banking sector has experienced an impressive increase in its size and geographical coverage since the 20th century. The financial crisis from 2007 to 2008 led to the bankruptcy of many banks and a wave of banking regulations.
Understanding how banks operate and the financial conditions they refer to is essential to make the best decisions about your money, because who would want anything bad to happen to their savings?
Banking Secrets are Worldwide
Wherever you are in the world, you probably use a bank for your pocket money. Salary, savings account or mortgage payments. You need a banking service. We will use our debit or credit cards on a daily basis. So, we have to agree that the banks have made our lives easier.
Financial Crises Are Real
Even if you think that a financial crisis is a one-time collective mistake, learn that they have been around since the beginning of money and that they are cyclical in nature, which means they can be anticipated.
The U.S. economy has followed the same cycle of financial crises for nearly 200 years and experts warn that if this trend continues, we can expect a new financial crisis from this year, with a peak in 2019.
Financial crises do not always have a devastating impact on the economy and generally result in a loss of paper wealth due to high debt levels. The crisis from 2007 to 2008 began as a subprime mortgage crisis and ended with the collapse of several investment banks, leading to general global chaos.
There are ways around this. Have a great plan. Use a retirement calculator to help in this.
American Banks Are Highly Regulated
If you are traveling or moving to the United States; keep in mind that all banks operating in or from America are highly regulated at both the federal and state levels. The goal is to provide most services on an equal basis across the country and there are even bank examiners who are employed to monitor banks and ensure compliance with these regulations.
Banks Hate Cryptocurrency
Blockchain technology is undoubtedly revolutionizing the banking sector. Blockchain cryptocurrency – bitcoins, a digital currency are all the buzzwords you see in every article these days. Most don’t understand it and those who do are making profit every-single-day.
The BLOCK chain technology has the advantage of being decentralized and, in essence, allows each transaction that occurs with a crypto world to be tracked and recorded to its first user.
It has such potential that it can leave the banks without any business hands and this fact is making banks quite angry. More than half of the Swiss banking sector’s income comes from commissions. This cryptocurrency puts Switzerland at risk of losing money because the blockchain technology makes cross-border transactions cheaper and faster. But it might take some time before we get there.
Banking secrets like tax havens are used by the rich use all the time. The rich hide their dirty money in offshore accounts all over the world.
When you spend your life making a fortune and building an empire, it doesn’t seem fair for the bank and the government to come and take half of it because of taxes and fees.
Fortunately for the rich, there are countries and institutions that understand this problem and have found solutions. One of them is to send your money to an offshore account in Malta or Luxembourg, a country called a tax haven.
If you open an account in one of these countries and live there for a short period of time, you benefit from all the advantages for local citizens, such as lower taxes and zero fees. That is why many rich people seem to have little money because they cannot track their accounts abroad. Other tax havens are Puerto Rico, Belgium, Cyprus, and Gibraltar.
The Rothschild Family
When you think of the richest men in the world, Jeff Bezos immediately comes to mind. That is absolutely correct. But throughout history, there have been and still, are families with trillions of dollars in net worth. This family could be the subject of conspiracy theories about the money they had was very real.
The Rothschild family is a wealthy family from Mayer Amschel Rothschild of Germany who established their banking business in the 17th century. If there is a family with a wealth of knowledge on banking secrets it is this family.
You don’t get this much wealth without knowing a trick or two.
Mayer Amschel Rothschild founded an international banking family where his five sons settled in London, Paris, Frankfurt, Vienna, and Naples. During the 19th century, the Rothschild family owned the largest private fortune in the world and the largest private fortune in modern world history.
Are you aware which bank is the richest? Which has the greatest assets or is by far the most popular. It is certainly not an American or European bank.
The Industrial and Commercial Bank of China or ICBC is China’s multinational banking company. The world’ s largest bank by total assets and the world’ s most valuable bank by market capitalization since February 2017. They are among the four major Chinese banks, all of which are state-owned, and as of June 2015, their assets stood at $3.616 trillion.
The bank is also the largest bank and public company and ranks first among the world’s top 1000 banks.
Bank Lost 12 Million Customers
Not all banking secrets benefit the institution. Normally, we don’t hear a lot of bad things and scandals from Australians. But this time, it hit the news hard. Apparently, the bank has lost the records of 12 million customers, which represents almost half of the Australian population. This happened after two magnetic tapes were lost by an employer.
The bank confirmed the rumor and admitted that the data was completely lost.
Commonwealth Bank reported that the data included client names, account numbers and nearly 16 years of information on client transactions from 2000 to early 2016. The incident occurred in May 2016, but they did not want to alert the media or customers, so they confessed sometime later.