What Is Somali Banking Model?

[DR OSMAN]

I want to know the model they using or is it mix of models or as I fear 'no model'. Normal banks store all their cash supply in 'assets' like stocks, bonds, mortgages, business loans, it's always fixed to 'asset', and they keep a 'fractional reserve' like 10% for cash supply to support their customers daily/monthly/yearly transaction.

That's why it takes a long time for banks to 'settle' big sums of money like billions of dollars as they need to sell 'assets n convert it to cash' liquidity!!! and that takes time. It's the same model as normal people, most 'sane' ppl and note I said 'sane' meaning not 'somali' store their 'wealth in properties' and only keep a fixed 'amount in cash' for their daily living, Banks also operate on similar model. The problem with 'cash' storage is 'inflation' dilemma, it loses value to the effect of 1-5% a year multiply that over long duration ur talking 50% n more lost in value. So it's like buying car, it depreciates.

So what's the Somali Bank Model? Is there other models u know of? @Inquisitive_ loves this topic

 

[DR OSMAN]

So what does Somali banks do when customers lay down their 'deposits' what model do they follow? god forbid it's just 'in accounts' loooooooool, if it is, zoo-mali intellect is exposed as their losing 1-5% a year in de-valuation. If u store 1 million, u lost 10k to 50k depending on inflation and their is no-way any1 will lay down their money into such banking model.

It's time the banks begin loans to the public for property, vehicles, start up businesses. From there it has to create an investment banking arm, where it stores it's unworking capital in 'shares, bonds' of foreign markets.